Ending Car finance Early

aidant799

Hi guys,

Thanks in advance .

My query... I have been advised that I can end my car insurance early, that said; I have been promoted at work and am due my company car but have a current vehicle on finance and do not really want to to paying for it and not using it for the remaining 2.5 years.

I have a 36 month agreement that is paying off the full value of the vehicle over that period eg £165 per month.

The finance broker was allcarsallcredit and the finance was accepted through Barclaycard finance.

Any advice on how to end the finance sooner without paying a lump sum would be much appreciated.

Thanks

Nearlyold

Not sure what you are hoping you can do, you can't just hand the car back at this stage.

Is the finance secured against the car ie is it a conditional sale/hire purchase agreement or a personal loan type arrangement?

aidant799

Well according to several websites I have seen online regarding Hire Purchase, after 2 years you can give the car back and stop paying anymore. I thought this was rather odd as surely the value of the depreciation and so on would be taken into account.

I am pretty sure it is a Hire Purchase against the car, not 100% sure as the broker set this up with the finance company.

I just want to know if there is a quick way to end the finance and give the car back.

Bonfire_Bride

If it is normal HP, then you can request a settlement figure. This will have interest attached and possibly an early settlement fee (not usually though)

You can sell the vehicle to a dealership or privately. HOWEVER....the finance company will need the payment of this settlement figure before the vehicle transfers hands. Once the finance company has received the funds, they will be able to offer a letter of clearance (to the dealership or private buyer) to confirm that they no longer have an interest in the vehicle.

Handing the car back is usually known as voluntary termination. You would need to speak with your finance provider about this as it can only be done under certain conditions.

Nearlyold

aidant799 wrote: »

Well according to several websites I have seen online regarding Hire Purchase, after 2 years you can give the car back and stop paying anymore. I thought this was rather odd as surely the value of the depreciation and so on would be taken into account.

I am pretty sure it is a Hire Purchase against the car, not 100% sure as the broker set this up with the finance company.

I just want to know if there is a quick way to end the finance and give the car back.

The only "quick way" to end the finance is to pay it off and sell the car as bonfirebride describes.

There is with all regulated HP agreements a statuary right to hand the car back once you have paid 50% of the total amount payable, this figure will be stated in your finance docs. The vehicle has to be in fair wear and tear condition or the finance company will bill you extra to cover any excessively poor condition.

aidant799

Nearlyold wrote: »

The only "quick way" to end the finance is to pay it off and sell the car as bonfirebride describes.

There is with all regulated HP agreements a statuary right to hand the car back once you have paid 50% of the total amount payable, this figure will be stated in your finance docs. The vehicle has to be in fair wear and tear condition or the finance company will bill you extra to cover any excessively poor condition.

That in a nut shell is what I wanted clarifying. Thanks for your help

eschaton

aidant799 wrote: »

That in a nut shell is what I wanted clarifying. Thanks for your help

Surely if you want an answer your paperwork will tell you. A lot easier than asking people that haven't seen your agreement to guess as to what you can do?

aidant799

eschaton wrote: »

Surely if you want an answer your paperwork will tell you. A lot easier than asking people that haven't seen your agreement to guess as to what you can do?

I most definitely agree. But I wouldn't be seeking advice if I could find the paperwork to reference. I used this website to seek general advice and that's what I have received.

eschaton

aidant799 wrote: »

I most definitely agree. But I wouldn't be seeking advice if I could find the paperwork to reference. I used this website to seek general advice and that's what I have received.

Well why not contact the finance company? Any answers you get are only educated guesses.