Can i terminate my car finance? It's on Hire purchase. Miles done100000

MrGg

Is it possible to return my car under voluntary termination? i have done 100000 miles in three years. Now i feel the car is too small and still have another 2 years to pay the finance. On my finance agreement it mentions about Voluntary termination but the milage limit space is blank and i understand i have done lots of miles. Do you think they will charge me for the milage need suggestions please.And another thing to mention is i have couple of dents in car and there is a damage in skirting which i am happy to repair or pay.

lopsyfa

You can VT any you like but expect them to charge you for the excess mileage and for any scratches and dents above the fair wear and tear.

You will probably be better part exchanging it for the larger car you want because assuming the excess charge is 4p per mile (most likely more) and you have gone above by 50000 (also most likely more), that is at least £2000 on excess mileage charge alone.

You then need to do the maths based on the value of the car but likely VT won't be the best option except if the car is high value.

molerat

You can VT after you have paid the figure mentioned in the agreement.  If there is no mileage quoted in the agreement then you are very lucky and there should not be any charges on that score.  Any other damage will of course be chargeable.

DrEskimo

HP agreements won't have mileage as there is no guaranteed value at the end. 

You can VT at 50%, and on a HP this will be exactly half way through the term, as you are paying the entire amount borrowed. 

As has been said though, it's unlikely to have depreciated faster than you have being paying it off, so first check what your settlement figure is (can use the calculator below, or just ring and ask your lender) and then get a rough idea of the cars value using WBAC, etc. It's likely the car is worth more than you earn, so you would be better off trying to trade it in (or settling the finance yourself and then selling it privately if you can) and using any surplus towards your next car. 

http://www.financecalcs.co.uk/Calcs/Settlement.php

MrGg

Unfortunately my car is worth less than the finance owned. As i mentioned I have already paid more than half of finance  I am happy to pay for the damages in car. I am quite tight on budget too therefore looking to get out of the finance agreement if i could. There is one dent and side skirting needs to be replaced. which i would pay.

But my only concern is if they ask me to pay a lot i would not be able to. Just wanted to make sure i  won't get into financial difficulty.

Anyone with similar experience. Or suggestions would be great help. 
Thank you everyone

Mercdriver

If you have damage, leaving it to them will leave you with a large bill.