I have a question... re: car finance

Carillon_2

Hello,

I'm not sure if this is the correct forum to be posting in but here goes...

I'm desparate to get myself out of debt and stupidly bought, a couple of months ago, a brand new car on finance. Looking into my finances now I would be better off getting rid of the car, this would free up over £300 a month that i could use to snowball my credit cards with.

Now i know that when it comes to car finance it is very hard to get out of the agreement, you need to have paid at least half of the term of the agreement before you can terminate it.

My question is, do you know if it is possible to sell the car back to the dealership you bought it from? i know that i will lose money but i think i will save in the long run.

Thank you for reading and for any advice!

Dr_Hook

AFAIK you can take it back, but be aware that there may be a shortfall. Have a look at the credit agreement - there should be termination and repossession clauses which will tell you what will happen under these circumstances.

If the agreement doesn't have these clauses on there, it's 99.9% likely that it's not Hire Purchase & as such not secured on the vehicle. In that case you're better off as you can sell the car yourself and almost certainly get a better price for it than you would if you returned it.

If in doubt, call the lender and ask - I'm sure they'll be able to tell you how to go about it.

debt_doctor

Your agreement is probably a controlled credit agreement. ( hp type agreement ) Sadly you are likely to lose a packet from doing this as the amount owing will be the full cost of the car plus all the interest on the agreement, less an early settlement rebate which wont be much.

Also the cash value of the car now is likely to be a 3rd less than what you paid for it. The only way to find out is as Dr Hook says, contact the lender, hope its not a bad suprise but..........

Best wishes

quantumleap

Call the company that the credit agreement is with. Ask them for a settlement figure. Then check the value of the car if you sold privately.