Sending car back to finance company

Rye93_2

Hi,

I was hoping someone could advise as I have never done this before. I recently sent my car back to my finance company as I can no longer afford it. I currently have £3300 left on my finance balance and I was told today that my car has sold at auction for £4000.

During the this process, I was advised my the finance company to cut off the direct debit and there is now and outstanding balance of £620. It may sound silly, but is this £620 part of the grand total of £3300 left on the finance that has not been paid or would this be on top of the £3300?

Also, if any one has done this, do you happen to know what fee's are normally charged for the whole process as I would imagine the auction house takes a cut and the finance company for collection of the car and admin costs? 

Many Thanks

Nearlyold

Is this Hire Purchase or a Conditional Sale Agreement or a Fixed Sum/Term Loan?
How much as a percentage of the Total Amount Payable for the car had you paid.when you handed the car back? On what basis did you hand the car back was it A Voluntary Termination?

Rye93_2

Sorry for the delayed reply.

It was a PCP finance agreement with a buying fee at the end of the term of just £1.00 if that helps at all. I agreed to a voluntry termination. I have paid well over 50% of the total loan that was agreed upon purchase.

I'm still waiting to hear back from my finance company (Blue Motor Finance), but not sure what will happen next.

For example, after they deduct fee's which I'm sure there will be some, will I be due any money back at all or will this clear everything and that's it?

I've never done this before so any advice till I hear from them is really helpful and put's my mind at ease.

Thanks.

molerat

Handing the car back under VT simply ends the contract.  There is nothing to pay, as long as there was no damage outside the BVRLA guidelines, or refund, what they got for the car is irrelevant.