Terminating Car Finance

Booberrie

Hi All,

I was wondering if there is a possibility I can end my finance agreement early?

I'm not half way through but the costs are stupid!! I'm being charged £17k for a £9k car and I'm just so fed up with being fudged over what can only be described as loan sharks.
I have a snippet of my agreement attached which I'm confused about if it means I can end it or can't. Any help would be greatly appreciated.

The agreement states -
"You have the right to end this agreement. To do so you must write to the person you make your payments to, they will then be entitled to the return of the goods plus half the amount payable under this agreement which is £.... If you have paid this amount & taken reasonable care of the goods you will not need to pay anymore"

Thanks

Boo

DUTR

Well yes, as long as you adhere to the terms and conditions , why not?

bigjl

I am surprised you didn't know how much you would pay in total when you signed the agreement.

Unfortunately when you don't qualify for mainstream finance deals you pay through the nose.

Partly because those people have previously showed themselves to be a bit flakey when it comes to standing by their commitments.

£9k? Sounds like a nearly new Yaris or couple of years old Audi A3.

Maybe buy a cheaper car next time, as then the high interest rate has less of an impact as you have borrowed less.

Booberrie

Unfortunately I did read it but just got caught up in the "oh my god someone accepted me!!" hoopla!!
But surely that means I can return the car & terminate my agreement? But I would still be liable to pay half? Hopefully not in one lump!

Thanks,

Boo

bigjl

Booberrie wrote: »

Unfortunately I did read it but just got caught up in the "oh my god someone accepted me!!" hoopla!!
But surely that means I can return the car & terminate my agreement? But I would still be liable to pay half? Hopefully not in one lump!

Thanks,

Boo

Read your agreement. All the info you need is there.

motorguy

Booberrie wrote: »

Unfortunately I did read it but just got caught up in the "oh my god someone accepted me!!" hoopla!!
But surely that means I can return the car & terminate my agreement? But I would still be liable to pay half? Hopefully not in one lump!

Thanks,

Boo

Yes, you will be liable for half the total agreement costs, including what you've put in so far.

You're Voluntary Terminating the contract.

Booberrie

So the half in a total lump sum? Not in instalments?
Would what I've put in so far be taken off the half figure?

motorguy

Booberrie wrote: »

So the half in a total lump sum? Not in instalments?
Would what I've put in so far be taken off the half figure?

Yes, what you've paid so far - both in payments and deposit are taken off

Its 50% of the total agreement cost. Your total agreement cost will be made up of :-

• Your deposit
• The amount financed
• Interest charged
• Admin charges

All those figures will be in your contract

forgotmyname

Hand the car back with the balance to bring it upto 50% and your free of it.

rich13348

The other option is,if you can, pay more to the finance to get it finished quicker and pay less interest on the loan.

bigjl

Booberrie wrote: »

So the half in a total lump sum? Not in instalments?
Would what I've put in so far be taken off the half figure?

What does the agreement say?