i have a finance agreement for my car and would like to know if there is any way i could give my car back to the finance company , in good condition , and terminate my agreement ?? i am almost a year into a 5 year deal with the company but feel the agreement is costing me too much money so would like to know my options !!
2007-03-09 01:57:37 · 7 answers · asked by charlie p 1 in Business & Finance ➔ Personal Finance
The best thing to do would be to phone them up to discuss. It's more than likely that your contract agreement states that you are obliged to pay the full amount over the agreed period of 5 years and that's that... however, from the lenders point of view it's not financially sensible, nor really ethically moral or publucally wise to enforce this on customers so they would probably be willing to discuss a longer payment period or a return of the car but you will end up paying more or not getting as much back as if you sold the car privately for example.
Good luck
2007-03-09 02:04:15 · answer #1 · answered by Robin the Electrocuted 5 · 0⤊ 0⤋
It depends on what the finance agreement is.
If you have bought the car on hire purchase, once you have paid half of the total outstanding amount (including finance) you have the right to hand the keys back and walk away from the deal. This is called early termination. Have a look at the agreement you signed and you should see the total amount listed. This does not apply if you are in arrears.
If you haven't paid half of the amount, or you wan't to keep the car, you can settle the loan early. You will have to pay the amount of capital left plus some additional interest but this will be less than if you let the loan run to its end. You can either ask for a verbal or written settlement figure from the lending company, who are required by law to work out the settlement figure for you.
If you do'nt get anywhere with the finance company speak to the Citizen's Advice Bureau.
Consumer loans are tightly regulated in law.
2007-03-09 02:15:36 · answer #2 · answered by Sky B 2 · 0⤊ 0⤋
You really do not want to do this. If you give the vehicle back to the finance company, it will show as a voluntary repossession on your credit, they will sell the vehicle at auction for a lot less than you own on it and you will owe the difference. The next thing that will happen is they will send you to a collection company and they will hound you. Then if you still do not pay, they will take you to court, get a judgment and garnish your wages. The result of all of this is that you are still going to have to pay for a vehicle that you do not have the use of and your credit will be trashed.
Can you get someone to take over the payments for you. Someone you trust to make them because if they do not make the payments as agrees once again your credit will suffer. Or you can sell the vehicle yourself and pay any difference that you owe out of your pocket.
Sorry to be so negative, but that's just the way it is.
2007-03-09 02:09:49 · answer #3 · answered by ? 7 · 1⤊ 0⤋
What I did was took out the financial agreement with the car company thereby getting a big cash incentive for doing that,then 6 months later got a very cheap loan rate from Direct Line finance and paid the car finance company off.
Well done me.:-)
2007-03-09 02:15:49 · answer #4 · answered by Pat R 6 · 0⤊ 0⤋
Not that I know of.
Your best bet is to try to sell the car for what you owe, then buy a cheaper one. Problem is, it might not be worth that much. New cars depreciate really fast.
If you quit making payments the finance company will repossess it, but it will wreck your credit rating.
You're probably stuck. I'm sorry.
Look out for refinancing "sales." My credit unions (and banks do, too) occasionally have a "car sale," where you can get a car loan at a low interest rate. They usually apply to used cars, too. However, the interest rate is higher for a used car, and since you probably bought your car new and it is now used (even though you've been the only owner), the interest rate might be higher than your current one. But it doesn't hurt to check.
2007-03-09 02:09:56 · answer #5 · answered by Maryfrances 5 · 0⤊ 0⤋
Honestly, if you think that it's costing you too much, you should have thought about that before you bought the car.
I agree with a previous person who said you should try to sell the car for what you owe on it. Watch the blue book value of the car, keep it well maintained (keep oil change and other repair/maintenace records), and watch how much your payoff amount is.
Hopefully the reduction in what you owe each month is more than the reduction of what it's worth each month, and there'll come a sweet spot where you can make that money.
2007-03-09 04:10:25 · answer #6 · answered by calliope320 4 · 0⤊ 0⤋
You have no chance of terminating early! the only thing you can do is to contact them let them take the car back to reduce what you owe and continue to pay the balance, but this will give you a black mark on your credit file.
2007-03-10 03:30:01 · answer #7 · answered by FRANK W 2 · 0⤊ 0⤋