Can I get out of my car finance ?

onomatopoeia99

You haven't addressed the question of what you are going to drive once the Corsa is gone. It's important as borrowing will be a problem (as others have pointed out).

Will a banger that you can afford to buy for cash be better in your terms than what you have (I'm not against running old cars, the one I drove to work this morning is 12 years old and is the newest that I own).

harveybobbles

Stop paying for it, strip it and put the parts on eBay and use the cash to buy something better.

When they come to repo it, just show them where the shell is.

Thats a joke by the way..

motorguy

The other thing is if you owe £12k and hand it back not only will it wreck your credit rating but they will sell it at auction and persue you for the significant shortfall

molerat

motorguy wrote: »

The other thing is if you owe £12k and hand it back not only will it wreck your credit rating but they will sell it at auction and persue you for the significant shortfall

Incorrect, if you VT they can only charge you the remainder of the 50% and any non fw&t damage.

molerat

motorguy wrote: »

The other thing is if you owe £12k and hand it back not only will it wreck your credit rating but they will sell it at auction and persue you for the significant shortfall

Incorrect, according to the CCA if you VT a HP (as opposed to defaulting and having the car repossessed) they can only charge you the remainder of the 50% and any non fw&t damage.

You can end (terminate) a hire purchase or conditional sale agreement in writing and return the goods at any time. This can be useful if you can no longer afford the payments or you don't need the goods any more.
You will have to pay all the instalments due up to the time you end the agreement. If your payments come to less than half of the total price of the goods, you may still have some money to pay as the lender is entitled to this amount under the agreement. If you have already paid more than half of the price when you end the agreement, you can't get a refund but you usually won't have to pay any more.
If you are not sure whether you still owe anything, check the original credit agreement which should show the total price of the goods and the amount you must pay if you end the agreement. The credit agreement is the legal document you signed when you bought the goods.
Lenders sometimes say you must pay the whole amount owed under the agreement before you can end it. This is wrong.

http://www.adviceguide.org.uk/wales/debt_w/debt_borrowing_money_e/debt_types_of_borrowing_e/hire_purchase_and_conditional_sale.htm

motorguy

molerat wrote: »

Incorrect, according to the CCA if you VT a HP (as opposed to defaulting and having the car repossessed) they can only charge you the remainder of the 50% and any non fw&t damage.

Interesting - wasnt aware of that.

Makes little difference to the O/P because if they owe £12K of a £14K contract the finance company will pursue them for £5,000. :eek:

mcjordi

use it till you can safely VT it..

i hated paying monthly payments for a car hence why i got into bangernomics i dont care what i drive but never would i pay £14k on a corsa.. sorry..

kwmlondon

Drive it into a brick wall at 50mph and claim the insurance.

Foxy-Stoat_3

kwmlondon wrote: »

Drive it into a brick wall at 50mph and claim the insurance.

As its less than a year old they may give the OP a brand new Corsa, or repair the one they have....DOH DOH

Either put up with it for a few years or find a garage and strip it for spares and report it stolen.

Second option was a joke !

Good luck OP, with getting out of your Corsa and your mobile phone contract.....try and not sign up for anything else and take your time in future!

Herzlos

You've got 2 options:

1. Trade it in for something else. Expect to lose a lot of money.

2. Run it until you reach the 50% point then VT it.