Car Finance and cancellation

yoshiyella

Hello All,

I took out a HP for a car last July on a 3 year finance deal. From mid August I will no longer need the car as my new job starting then is only 3 miles away from home as opposed to the current 35 miles. The car itself is fantastic and since I have had it I have had it fully serviced and even the garage said that the engine etc was in perfect condition.

I know usually with HP that once you have paid over half the money you can give it back - does anyone know whether or not the company may take it back after a year or anyone know a company that may buy it off me paying off the finance side of things? Or, as my credit rating is kaput, should I just continue for the next 2 years?

The car cost £5500 of which I paid a £500 deposit and am paying £241.42 a month. According to Noddle the opening balance was £8683 and the current balance is 6993. Not sure if anyone can tell me how much I would need to pay back in August time to clear off the balance as I know that if I pay back early it reduces the amount of interest so was assuming about £4500?! But I have no idea.

Or, finally, anyone think I should send my queries to the finance company direct?

Thanks for your time reading my waffle and thanks in advance for anyone who can give any advice no matter how little!

rajarr

Hello,

If you have reached the half way point on the agreement you could hand the vehicle back if you wished, for settlement the standard charge for a regulated agreement (which I assume yours is) Is one months interest plus the remaining rentals and you get a rebate of the remaining interest taken off the figure.

I would recommend contacting the finance company to discuss your options and find out if you are at half way point and what your settlement currently is. If the settlement is lower than what you can sell the car for I would see if you could organize selling it which would make you some money potentially.