Car Finance Conditional Sale Loan

skintmummy

Hello

Can any help with some advice please, I have a car on a 5yr loan agreement and have now paid 12mths. My circumstances have changed and I will no longer be able to afford to keep the car, is there any wa I can terminate the contract I have heard of a voluntary termination is there a clause this effect that might help me terminate the contract ??

Thanks in advance.

Nearlyold

For a Voluntary Termination you have to have paid 50% of the total amount payable, the figure will be in your finance docs. Unless you put down a big deposit (cash or part ex.) on the deal I'm afraid that after only 1 years payments on a 5 year loan you are currently well short of the 50% figure. How much would you get for the car if you sold it compared to the current settlement figure?

Nasqueron

It's fairly likely you'll need to be into your 4th year before you have paid 50% of the total amount (cost of car + interest)

Your documents will highlight the amount you need to pay before you can VT. You will have to ask them if you can pay it off early and perhaps sell the car + make up the difference

skintmummy

Thanks for the advice