and walk away without owing finance? I thing my agreement is over 36 months and I can hand the car back at 18 months. Does this sound right? The financial adviser said I can do this but that the finance company doesnt like it when customers do it. Will that affect my credit rating if I do do this?
2007-02-03 06:43:43 · 5 answers · asked by K 2 in Business & Finance ➔ Personal Finance
read your contract first. It will spell out your part of the deal.
2007-02-03 06:48:17 · answer #1 · answered by zocko 5 · 0⤊ 0⤋
That doesn't sound right.
If you have finance on anything, and you give the goods back you still owe the finance company for the amount you borrowed. That's what the credit agreement is all about. You borrow X amount over 36 months and agree to pay back X amount each month for the amount borrowed.
That will include all interest on the loan as well. So, if you have borrowed over 36 months and give the car back after 18 months you still pay the finance company your monthly payment but have nothing to show for it (no car but still paying out...not good!!) Are you sure it isn't something like you can hand the car back after 18 months, choose a new model and, maybe, amend the loan by extending the amount you owe to cover the new vehicle??
Check out your credit agreement and talk to them to get it very clear BUT ask them to confirm their reply in writing so that if they say "no, that's right. You don;t owe us a penny now" GET THAT IN WRITING.
Now this won't affect your credit rating as long as you have not missed a payment,
2007-02-03 06:58:33 · answer #2 · answered by Alf B 3 · 0⤊ 1⤋
yes, read your contract!
I think on average though its 18 months, i know of a few people who have rung their finance company up after 18 months and they have come to collect the car.
I dont think it will affect your credit rating, but it will no doubt affect your rating with that company!
2007-02-03 06:55:27 · answer #3 · answered by Becci 4 · 0⤊ 0⤋
If it truly is a hire purchase agreement, then you can give the car back and owe nothing if you've paid more than half the total price.
2007-02-05 22:30:42 · answer #4 · answered by Flup 5 · 0⤊ 0⤋
it wont go in your credit rating's favour!
you may be deemed as unreliable
in respect to your financial status,
not all financial services
have the same practices
it varys, my answer to your Q is in my opinion only.
2007-02-03 13:39:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋