Car finance

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samsonthedog1

samsonthedog1

Player Valuation: £8m
Hi lads, I read my finance agreement on my car yesterday and it said once I've paid back 50% of my loan i can legally return it and not have to pay anything else.

I've only got about 3 more monthly payments left on it to get to 50%.

I was wondering if anyone has done this before and if it's a easy process?
 

chrismpw said:
Nice trick. So you pay a mega corporation say £8k over the years, then give them back their product, yet you sound somehow grateful for the opportunity ?

How did we get here?
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Basically bought a big car when we was trying for a baby then found out I had problems so didn't need the big car.

it's not a ideal situation but the money I pay for it over 2 months I could buy a run around for what I need!
 

PhilM said:
Did you buy it from a manufacturing dealership? Best thing to do is speak to them, as there may be penalties for damage or mileage tariffs.
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This.

Get out a magnifying glass and read the reams of small print very carefully.

I'd wager there'll Ben penalty clauses for giving it back early, due to them potentially losing 50% of the interest on the finance payments.

Have a look online, there'll be someone who can give advice.
 
PhilM said:
Did you buy it from a manufacturing dealership? Best thing to do is speak to them, as there may be penalties for damage or mileage tariffs.
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I rang the finance company up yesterday and they said providing it's in a sellable condition its fine I just have to write a letter to them.
 
samsonthedog1 said:
Hi lads, I read my finance agreement on my car yesterday and it said once I've paid back 50% of my loan i can legally return it and not have to pay anything else.

I've only got about 3 more monthly payments left on it to get to 50%.

I was wondering if anyone has done this before and if it's a easy process?
Click to expand...

I think you will find you may return it at that point but it will be valued and set against the money you still have left to pay, if the current book value is less than the money you have left to pay you, will have to pay any difference plus if there is any damage to the car beyond normal wear and tear you will also have to pay for any repairs.

I don't believe it is as clear cut as you originally stated.
 
samsonthedog1 said:
Hi lads, I read my finance agreement on my car yesterday and it said once I've paid back 50% of my loan i can legally return it and not have to pay anything else.

I've only got about 3 more monthly payments left on it to get to 50%.

I was wondering if anyone has done this before and if it's a easy process?
Click to expand...

More details about it here:

http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/2/

Looks like you can do it as long as you have paid off 50% of the total amount to pay.

If you ever wanted car finance again with these people I would suggest another way. Also if your car has more mileage or has anything above reasonable wear and tear then you could be getting a bill.

Have you looked to see what the true value of the car is? If you were paying HP instead of PCP it may be beneficial to sell privately and pay back the termination fee and pocket the difference.
 

Depends if the car is worth a lot more than the balance. If it is, get a quick loan? and pay it off. You can then sell the car yourself.
 
samsonthedog1 said:
Basically bought a big car when we was trying for a baby then found out I had problems so didn't need the big car.

it's not a ideal situation but the money I pay for it over 2 months I could buy a run around for what I need!
Click to expand...
Never seen the point of car finance though, when you could get a second hand car so much more cheaply (with a straight forward loan).

When you give it back, remember that they will be looking for any opportunity to moan and therefore charge you for amelioration. My missus works at Honda, and on my advice she's avoided getting into their staff lease scheme so far. A colleague of hers last week was billed £500 because they said the car needed a vallet before it could be resold. It was 8 months old, he'd had it professionally valeted before returning, but they'd found a dog hair in the boot.

This is the sort of inhuman money collecting machine you could be dealing with. At least get a proper valet before returning it.
 
I've done it before. Had my car finance through Capital Bank, now black horse, just rang them and informed them I would like to voluntary terminate my agreement (which is your legal right). They will then send someone to collect the car. However.... make sure you sort out any issues that are not considered "wear & tear" otherwise they will charge you for these, I doubt proportionately either. I had no issues with mine but a quick search on the net will show you plenty who have been bitten by these companies as they come to auction the vehicles off.
 
Also, it should not effect your credit score in anyway, it just means it is likely that the group that finances the vehicle for you are unlikely to want to finance you again. It will drop off your credit history after 6 years anyway, so not a big deal.
 
As others are saying, I reckon the best bet would be to sell it privately, pay off the finance and pocket the difference.

Don't be tempted by the likes of " We buy any car ".

The initial quote that you get, is nothing like the final valuation fee, once they've inspected it using a microscope and advanced forensic techniques lol
 

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