Returning a car on Finance

azrael0374

About 18 Months ago I bought a Mazda 6 Diesel Sport (57 Plate) for around £4000 with finance i am paying back approximately £6000 just over a year of owning the car the engine died and I paid £3500 to a company to build the engine (Long Story).
However, since having the car back it has never been right and in fact leaks oil a lot and is underpowered I initially tried to get the company to rectify this but was met with abuse from the owners. I contacted Trading Standards who have since informed me that the company was a scam and they have been closed down and they are currently facing criminal prosecution.
I recently took the car to a mechanic who said it would cost around £1200 to repair the engine possibly more once he takes it apart and has a good look at it. I still owe just over £3000 on the car but have read that in the loan agreement from Moneyway that i can return the car once half has been paid, which I nearly have.
However, if I do this they are likely to charge me for the work that needs doing to the engine etc. So I'm not sure that would be a good option either. So at the moment I feel trapped between a rock and a hard place do you have any advice?

poppasmurf_bewdley

What does your HP agreement say about returning the car?

Does it stipulate any conditions/rules about the state of the car? If it does, then you will have to comply with those rules. If it doesn't mention anything about condition, then you should be able to return the car in it's present state.

aznlayer

You may be covered by 'Section 75 protection' if it isnt a hire purchase.


Did you pay a deposit on credit card? if you did you may get compensation from them.


Even if its a HP - you can claim through the finance company. if they knock you back, refer it to the financial ombudsman. in particular try to get evidence that the company is being investigated etc if you.

National_Debtline

Hi there and welcome to MSE.


If the agreement is HP (please double check your contract) then you have the right to Voluntarily Terminate the agreement at any point. You will be liable for 50% of the total amount repayable, minus any money paid to date plus any excessive wear and tear. This is where the engine may be an issue.

You need to send a termination letter, recorded delivery, before you return the car. You can return it even if you haven't paid 50% but the 'shortfall' would be due immediately and if you can't afford to pay it there and then, it may have an impact on your credit file.


Laura
@natdebtline