Is this possible with a loan? Give it back?

hufc2002

Hi all

My mate bought a used car from a garage 3 years ago. He took out finance with them to purchase the car and as far as I am aware it is just a nornal loan and not a PCP agtreement.

He has just got a new car through his work's salary sacrifice scheme therefore he needs to get ride of his old car.

He still owes money on the car therefore it is currently for sale however he tells me that if he doesn't sell it then it doesn't matter as he will just give it back to Santander as he has paid half.

Can he do this?

I am aware of VT with a PCP as my car is on a PCP agreement but not if its just a normal loan.

Cheers

System

If its a normal loan then no he can't

chalkie99

As long as it's a Hire Purchase agreement he can VT it. His paperwork will state what it is.

If it is on HP then it's not actually his to sell at the moment and, of course, if he does VT it, he is not going to get anything back from it. In fact, he should be careful to make sure he follows the process correctly and also takes lots of photos of the car and have any damage noted when he returns it. This might protect him from repair bills that the lender issues if they are not happy with it's condition or it sustains damage after it has been collected.

hufc2002

It's definitely not a PCP and surely Santander don't do PCPs.

What other type of loan could it be where he can do this?

hufc2002

chalkie99 wrote: »

As long as it's a Hire Purchase agreement he can VT it. His paperwork will state what it is.

If it is on HP then it's not actually his to sell at the moment and, of course, if he does VT it, he is not going to get anything back from it. In fact, he should be careful to make sure he follows the process correctly and also takes lots of photos of the car and have any damage noted when he returns it. This might protect him from repair bills that the lender issues if they are not happy with it's condition or it sustains damage after it has been collected.

The car is a 2008 Mini which he bought in 2011 (therefore was 3 years old at the time of purchase) and he got it from a garage but not a Mini dealer therefore surely it can't be on Hire Purchase??

chalkie99

Yes, Santander do PCP

Yes, you can buy a secondhand car on Hire Purchase.

If it's a personal loan then he is free to sell the car but he cannot hand it back to the lender.

I would leave it to your mate to sort his own problems out as you are in danger of confusing him yourself.

KennethC

chalkie99 wrote: »

Yes, Santander do PCP

Yes, you can buy a secondhand car on Hire Purchase.

If it's a personal loan then he is free to sell the car but he cannot hand it back to the lender.

I would leave it to your mate to sort his own problems out as you are in danger of confusing him yourself.

If it is an HP agreement then yes he can end the agreement if he has paid over half and take the car back, get him to tell the garage and see what they have to say, they may be delighted, although I'm not sure about Santander though.

hufc2002

He has also said that he won't make any money either way if he sells or hand's it back.

I understand that handing it back is literally handing it back so I do wonder why he is bothering trying to sell it if he will be no better off!!

DCFC79

hufc2002 wrote: »

The car is a 2008 Mini which he bought in 2011 (therefore was 3 years old at the time of purchase) and he got it from a garage but not a Mini dealer therefore surely it can't be on Hire Purchase??

He needs to check his paperwork to confirm it.

KennethC

DCFC79 wrote: »

He needs to check his paperwork to confirm it.

Well that's vital, I was assuming it was and as has already been posted, he cannot legally sell it if it is on HP. If it's a loan from Santander, then it's another ball game.

hufc2002

Can I just add that he traded in 2 car's (both still with finance outstanding) for the Mini in 2008.