Cancelling car finance

Stuckinarut

I am not sure whether I am posting this in the correct place, sorry if I haven't

Basically I bought a car using HP in August 2011. I then met someone and fell pregnant really quick meaning that was affordable as a single adult is now not as easy as a family. I have checked my paperwork and it shows if I have paid half the finance then I can return the car. I have paid more than half of the car already so this may be an option. I live in Scotland so for them to remove the car they need a court order. One of our friends seems to think that as I have paid more than the initial car value and stop making the payments then a judge may rule that due to what I have paid and the high interest I am charged that they can't take the car off me but I will be liable for the remaining balance. Does anyone know if this even happens. My credit is already ruined so by stopping paying it can't make it any worse, but I want to do the best I can for my family in the easiest way. I would obviously love to keep my car, and my plan is to save the monthly HP payment and buy a run around car outright with no finance attached to it, meaning we would have that money spare each month to try and get back on our feet.

Hintza

When is the finance agreement due to end? 4 years?

Your best is probably to try and continue with payments or if that is not possible get a settlement figure and then sell the car paying off the finance with the proceeds.

Handing it back at this stage will leave you with nothing.

motorguy

Stuckinarut wrote: »

I am not sure whether I am posting this in the correct place, sorry if I haven't

Basically I bought a car using HP in August 2011. I then met someone and fell pregnant really quick meaning that was affordable as a single adult is now not as easy as a family. I have checked my paperwork and it shows if I have paid half the finance then I can return the car. I have paid more than half of the car already so this may be an option. I live in Scotland so for them to remove the car they need a court order. One of our friends seems to think that as I have paid more than the initial car value and stop making the payments then a judge may rule that due to what I have paid and the high interest I am charged that they can't take the car off me but I will be liable for the remaining balance. Does anyone know if this even happens. My credit is already ruined so by stopping paying it can't make it any worse, but I want to do the best I can for my family in the easiest way. I would obviously love to keep my car, and my plan is to save the monthly HP payment and buy a run around car outright with no finance attached to it, meaning we would have that money spare each month to try and get back on our feet.

Happy to help, though if you can give us a bit more info, we'll al be able to advise better -

Whats was the length of the finance agreement?

Whats the details of the car - make model miles, petrol / diesel, miles.

How much are you paying monthly?

Who is the finance company?

Is there any final payment?

What deposit did you put down?

harveybobbles

Slightly off topic, but fell pregnant?

Was you planning?

Stuckinarut

I will get the details and post them up. No harveybobbles, it was not a planned pregnancy

Stuckinarut

It was 42 payments long @ £154.03 (including gap insurance)
It's a peugeot 307 Petrol 67500 miles.

The company is first response finance, and they say I have 19 payments left to go.

The car price was £4295 but I part exchanged and they gave me £1000. My finance was for £3295 at an interest rate of 42.18% total finance £6851.68 The final payment for the car is £212.54.

The gap insurance was £425 with an interest rate of 34.65% totalling £692.58.

Any help is appreciated.

motorguy

Stuckinarut wrote: »

It was 42 payments long @ £154.03 (including gap insurance)
It's a peugeot 307 Petrol 67500 miles.

The company is first response finance, and they say I have 19 payments left to go.

The car price was £4295 but I part exchanged and they gave me £1000. My finance was for £3295 at an interest rate of 42.18% total finance £6851.68 The final payment for the car is £212.54.

The gap insurance was £425 with an interest rate of 34.65% totalling £692.58.

Any help is appreciated.

I would have thought by some rough calcs (23 payments made @ £154.03) that you must be roughly 50% of the way through your agreement. You "should" be able to ring the finance company and ask them how close you are to that or if you are past it.

After you have paid 50% of the total transaction cost (including any deposit) you can hand the car back with nothing further to pay (assuming you have kept reasonable care of the car)

I am sure i dont need to tell you, you have been stiffed very hard on the interest rate - presumably you were already a poor credit risk? - so to me i'd be looking at handing it back legally.

Stuckinarut

My car is currently parked outside a garage unable to move, so don't know whether they would accept it back, and i don't have the money to fix it

k3lvc

Stuckinarut wrote: »

My car is currently parked outside a garage unable to move, so don't know whether they would accept it back, and i don't have the money to fix it

How 'unable to move' is it ? Flat tyre or a write off ?

Finance company will only accept a VT if it's in a condition in line with it's age/mileage

rs65

motorguy wrote: »

I would have thought by some rough calcs (23 payments made @ £154.03)

Finance started Aug 11 so about 39 payments should have been made. Will the VT clause still apply if in default?

motorguy

rs65 wrote: »

Finance started Aug 11 so about 39 payments should have been made. Will the VT clause still apply if in default?

I was running with 42 payments as confirmed by the O/P - 19 already made as confirmed by the finance company.

If the O/P is in default then that will most likely negate the 50% VT clause - but they implied in their original post they were still making the payments.