Voluntarily terminating car finance

Angel8585

Hi,

I hope someone can advise me what is best, I bought a car on finance in 2014, it has caused me nothing but trouble, ended up with a new engine (garage recommended a reconditioned one which the head gasket blew on as soon as the warranty expired) once the head gasket went i decided to stop throwing money at it and just pay the finance and then scrap it. However, Barclays have said a condition of my agreement is that it must have mot, tax and insurance. I am not willing to get it in for an mot and therefore my options are as follows :

Try and pay the outstanding £1750 (or settlement figure)

Voluntarily terminate( I want to know if they can charge me above what I owe them due to the head gasket etc as i won't be sending it back in reasonable condition, are they able to charge me more than I owe? )

Or repossess which i dont want them to do.

I will not throw any more money at this car so getting it fixed is not an option . My main question after my ramblings is will they bill me for thousands if I send it back with head gasket. They are aware the car is broke and that I don't want to fix it and are sending the paperwork for returning it to me. They also say they will bill me for recovery, i have heard they cannot. Can anyone clarify.

Please help as i dont know what the best course of action is.

Tia

flashg67

AFAIK, part of the finance agreement would be for it to be in 'reasonable' condition for its age/mileage. If you don't return it in a reasonable condition they will charge you for their loss if value, which may be more than you owe. Reasonable might be open to interpretation, but in running order with no major damage or defects would be a minimum I'd say, plus a valid MOT.
Problem is, you won't know this until they have the car, then it's too late.
I don't see that you can expect them to incur extra recovery costs over & above what they'd pay for one man to be able to collect rather than sending recovery truck just because it's not driveable either.
I've had head gaskets done for around £300 depending on the model. Would seem the best route to get it fixed, MOT'd then sell or VT it then. You're opening up the possibility of even more expense & hassle otherwise, IMHO

Angel8585

Thank you for your response. I will see if i can get a quote for repair, last time I had a head gasket go i was quoted £800 and as I've spend in excess of £3k repairing the car since I've bought it I didn't fancy spending anymore and was happy to just keep paying it off until it's finished, but Barclays arent appearing to let me do that unfortunately! :rotfl:

missile

What is the finance deal: PCP / HP or other?
You say

Try and pay the outstanding £1750 (or settlement figure)

is the car then yours to dispose of?

Angel8585

No, it's Barclay's until it is paid off.

DoaM

So you meant Yes then.

forgotmyname

Fix it and keep it.

Fix it and hand it back.

Hand it back broken and get charged for collecting an unroadworthy vehicle (maybe) if not still a bill to repair it which will be far greater than it will cost you to fix it anyway.

missile

DoaM wrote: »

So you meant Yes then.

Nice one :rotfl: