Car Finance - Giving car back

lincsdan86

Good afternoon all.

As part of my agreement for my car finance there is a clause meaning that I can give the car back once 50% of the finance as been settled which will be around November this year.

Does anyone know the "hoops" you have to jump through to facilitate this, i.e does the car have to have had a recent service etc?

Also what are the odds of being able to get another car on finance straight after returning the old one?

Thanks for anyone that looks at this thread and provides input.

:-)

bargainbetty

Try reading the terms of your own agreement - without looking at it, we would be hazarding guesses.

You could also call the finance company and ask them.

With regard to obtaining another vehicle, again, without knowing your personal details, it is hard to say. Do you have a decent financial history - have you messed anything up or incurred significant debt between then and now? If not, and the account is properly settled, then you should be OK.

littleskintdragon

We did this in March this year, the finance was through citroen.

We rung them, and as long as we hadnt missed a payment, an had paid 50% of the finance we could give it back.

The first thing they did was send us a form to complete, cant remember exactly what it said, but nothing overly exciting.

Then they called us to let us know when they would collect it, and turned up to get it.

They do also say it needs to be in good condition, and we did get sent a bill for £200 afterwards because of a big scrape on the front and the glove box handle had fallen off. I didnt mind this because the car was off our hands.

As for getting a new one, we've just ordered a new car, cheaper to run etc, with no questions or finance issues.

Clive_Woody

lincsdan86 wrote: »

Good afternoon all.

As part of my agreement for my car finance there is a clause meaning that I can give the car back once 50% of the finance as been settled which will be around November this year.

Does anyone know the "hoops" you have to jump through to facilitate this, i.e does the car have to have had a recent service etc?

Also what are the odds of being able to get another car on finance straight after returning the old one?

Thanks for anyone that looks at this thread and provides input.

:-)

My guess would be that it needs to have been serviced in accordance with the manufacturers recommendations (yearly or when required if on a variable interval service) and needs to be in good condition (normal wear and tear permitted).

I believe that this will show on your credit file as a VT, but how this will be viewed on future potential HP purchases I don't know. I suspect this will not be seen as a positive thing but may not stop them offering you finance but maybe at a higher rate. I have no experience of this so just guessing.

littleskintdragon

Clive_Woody wrote: »

My guess would be that it needs to have been serviced in accordance with the manufacturers recommendations (yearly or when required if on a variable interval service) and needs to be in good condition (normal wear and tear permitted).

I believe that this will show on your credit file as a VT, but how this will be viewed on future potential HP purchases I don't know. I suspect this will not be seen as a positive thing but may not stop them offering you finance but maybe at a higher rate. I have no experience of this so just guessing.

Our car hadn't been serviced since 10,000 miles and had 32,000 on when we sold it 3 years later, they were fine about this.
Also on the new car they offered us a 3% interest rate verbally and that' what we got so I don't think its had an impact.

Don't get me wrong other companies may work differently, but that's just our story and I wouldn't hesitate to do it again if I found myself in the same situation.