Car finance return?

Stesuv

I’m 2 years into a 5 year deal on a Peugeot 208 only bought for a new baby but we have quickly our friends the car. What can we do to get out of the finance deal early so we can finance a larger car. Paying off the remainder isn’t viable. Cheers. :beer:

BoGoF

Depends what type of deal you have (PCP/HP?).

Your paperwork should tell you the consequences of early termination but there is no 'get out'

Stesuv

Hi. It’s hp.

bengalknights

You would most likely have to sell and pay off via extra funds as its HP

Check the paperwork

BoGoF

Possibly you can voluntarily hand the car back after you have paid 50% of the total finance.

Stesuv

Hopefully. We naively bought it without thinking about all the extra stuff a baby needs. We just needed a reliable car fast. :beer:

molerat

Once you have paid 50% you will be able to hand the car back, the figure will be stated on your agreement - unless you paid a large deposit I doubt you are anywhere close yet. The other option is if purchasing another car from a dealership they will pay off the finance and roll up any shortfall into the new deal.

National_Debtline

Hi Stesuv

BoGoF wrote: »

Possibly you can voluntarily hand the car back after you have paid 50% of the total finance.

Worth clarifying: assuming it is a regulated HP agreement, you can voluntarily hand the car back at any time - it's just that doing so before you've repaid 50% leaves you liable for whatever payments were still required to reach that threshold. Repayment of any such balance could be negotiated informally between you and the lender, but could result in adverse data being reported to credit agencies.


As others have suggested, another dealer may be willing to pay off your existing deal if it means they can sell you a more valuable vehicle.


Just to clarify - I'm assuming that your first message was a victim of Autocorrect and that


"we have our friends the car"


was intended to read as


"we have outgrown the car"


?


Dennis
@natdebtline

Stesuv

Lol yes. Autocorrect strikes again. Outgrown it should read.

mambo69

Unless you have another child then how have you outgrown the car? the pushchair will not be needed as much soon, and large children equals less stuff surely

Fireflyaway

I agree with mambo69. If you like the car you probably wouldn't outgrow it unless you have 2 kids and another on the way.
We handed out car back once 50% had been paid. There was a small admin fee but it was easy, they collected it off the drive. It was never mentioned on our credit reports but the particular lender wouldn't allow us to borrow with them again in future. Just one of their policies.