Gregor
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Registered: 28th Nov 03
Location: Paisley, Renfrewshire
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Ending a finance agreement early/handing vehicle back.
Has anyone done this? How do potential lenders look at this and does it affect credit rating?
[Edited on 29-06-2012 by Gregor]
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mwg
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Registered: 19th Feb 04
Location: South Lakes
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Think if you are over half way through the agreement you should be ok... dependant on mileage and vehicle condition of course.
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SetH
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Registered: 15th Jul 01
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Yes, I had to do this when I was made redundant in 2009.
Luckily I was not in negative equity with the car and the sum left on the finance was very similar to the value of the car.
I rang the finance company and explained the situation and stated that I intended to sell the car. They asked what I was hoping to get for it and I gave them a figure to which they said if I could get that they would accept it as full and final settlement.
First buyer to see my car bought it and he rang the finance company up there and then and paid the money to them.
Did not affect my credit rating as the finance was settled early with no penalty.
Best thing is to speak to them and be open imho.
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mwg
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Registered: 19th Feb 04
Location: South Lakes
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Look in your contract, what I have said should be written in there somewhere in the small print.
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SetH
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Registered: 15th Jul 01
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Or just have a phone call with your finance provider rather then speculating. I have also heard something along the lines of being half way through the agreement but the interwebz told me this. When I rang them I was only a 1/3 through but they were still happy to do it.
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chloe16v
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Registered: 29th Nov 07
Location: Rotherham
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we did it, sold the navara an the buyer rang the finance company and paid it over the phone 
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Gregor
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Registered: 28th Nov 03
Location: Paisley, Renfrewshire
User status: Offline
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Ok cheers. It's not because I can't afford the car but more because I'd like to save money and the car itself is no required. There is 5.8k left on the finance. I'd say a 2006 Astra VXR ( my car ) could fetch at least that.
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chrisritch
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Registered: 2nd Sep 08
Location: Northants Drives: V40
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Unless Daimo is your sales agent, Then you are fucked.
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mwg
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Registered: 19th Feb 04
Location: South Lakes
User status: Offline
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quote:
Originally posted by SetH
Or just have a phone call with your finance provider rather then speculating. I have also heard something along the lines of being half way through the agreement but the interwebz told me this. When I rang them I was only a 1/3 through but they were still happy to do it.
In the contract for my old car it said about it. Basically as long as they either get the money to clear the remaining finance or if you're halfway through & ok on the mileage you will be alright.
If you've gone way over your mileage limit and/or got loads of damage then you are in the shit.
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John
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Registered: 30th Jun 03
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Finance and PCP are different.
Normal finance (HP?) is literally just a loan. You can pay it off whenever you want.
I'm not sure on PCP and paying it off is different from handing the car back without paying it off.
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ed
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Registered: 10th Sep 03
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Voluntary termination: Section 99 of the Credit Act of 1974, stating that once 50% of the agreed total payments has been paid, the property, upon inspection and declaration by a 3rd party that it’s in good condition, can be returned and the agreement terminated.
As John said though, depends on what kind of finance product you've used.
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mwg
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Registered: 19th Feb 04
Location: South Lakes
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Good point, assumed he was talking about a car he bought new on a PCP or similar.
2006 Astra won't be on a PCP
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MatthewR
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Registered: 21st Oct 02
Location: Rickmansworth
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With my Astra (on finance) Santander say once half the amount lent is paid off you can end the finance depending on condition/mileage of car so for example if you borrowed £10k on finance and have paid over £5k back then you can explore the possibility of ending the agreement
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Robin
Premium Member
Registered: 7th Jan 04
Location: Northants Drives: Clio 182 Cup
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I was with Santander. As long as you have paid more than half the payments, you can do what ed says then they charge you for 'unreasonable damage'. They wan £80 from me which I'm disputing as the car has done 130k.
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MatthewR
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Registered: 21st Oct 02
Location: Rickmansworth
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What the £80 for Robin? Im very tempted to hand mine back but dont fancy being stung for anything that id consider 'wear n tear'
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Robin
Premium Member
Registered: 7th Jan 04
Location: Northants Drives: Clio 182 Cup
User status: Offline
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£35 for a scuff on front bumper, which is fine as it was entirely my fault, £45 for a tear on a rear door card which I don't know about.
To be fair, they sent me a document with all the work they had done, parking dents, smart repairs, windscreen replacement etc, which totalled about £650 and only asked for £80 so it's not so strict by he looks of it
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MatthewR
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Registered: 21st Oct 02
Location: Rickmansworth
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Okey doke, thanks mate
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Robin
Premium Member
Registered: 7th Jan 04
Location: Northants Drives: Clio 182 Cup
User status: Offline
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Just settled it at £35, the paperwork I signed didn't highlight anything internally even though we checked the car over upon collection.
If there's anything you don't think is fair, dispute it!
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John
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Registered: 30th Jun 03
User status: Offline
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Does handing it back definitely not put a mark on your credit history?
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Robin
Premium Member
Registered: 7th Jan 04
Location: Northants Drives: Clio 182 Cup
User status: Offline
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According to MSE, the FSA and my bank manager, no.
But.... I'm sure it'll be noted somewhere, unofficially.
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gez bay
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Registered: 14th Feb 08
Location: South Wales drives: Vxr
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It doesn't put a mark on you if you've paid more than 50% of the cars value.
Voluntary termination iirc it's called.
[Edited on 28-06-2012 by gez bay]
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John
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Registered: 30th Jun 03
User status: Offline
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No wonder they try and charge as much interest as possible then. They have to account for people who haven't done their sums before hand.
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gez bay
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Registered: 14th Feb 08
Location: South Wales drives: Vxr
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But like said above, if the cars 50% paid off, but hasn't been taken care of; dents, high mileage ect, think its something else then.
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ed
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Registered: 10th Sep 03
User status: Offline
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Goes on your credit report as a voluntary termination. Not a bad thing at all.
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Robin
Premium Member
Registered: 7th Jan 04
Location: Northants Drives: Clio 182 Cup
User status: Offline
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quote:
Originally posted by John
No wonder they try and charge as much interest as possible then. They have to account for people who haven't done their sums before hand.
Absolutely correct, 18k for a 12k car over 60 months. I didn't do my sums, all I cared about was not having a shit old cavalier.
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