focusjohn

Hi guys was just wondering whos handed a car back after paying off 50%. How did the finance company take it did they try and bill you for anything extra? Had a look about the net but theres soo many stories.

Skotie jay

personnaly from what i know they will charge u 50% of what is left from when they sell the car if there is any of the balance out standing once they sold it on.

RS Grant

iTrader: (1)

Been a few years since I worked in the motor trade, but IIRC we were told that once the payments had crossed 50% of the initial invoice price the customer could hand the car back and walk away with NO penalties and NO black marks against them/their credit rating, it was called Voluntary Termination.


Cheers,
Grant

focusjohn

Thats what i was led to believe. Im just trying to see whos done it ect so i can decied weather they will be bothered about the tinyist of scratches.

k8donn

As long as the car is in a fair wear and tear condition thats fine. Usually takes a few weeks they may ask you to take the vehicle to an auction for them.

Simon

Graceland

A good friend of mine has recently done this with her car - Handed the vehicle back after making 50% of the payments with no penalties or credit marks against her

Low loader turned up and took the vehicle then it was auctioned off and someone got a bargain as it went for at least 800 below normal market prices

scottyrs

iTrader: (1)

yeah exactly what happened to my astra got sent to leeds to go in car auction and i didnt get black listed ect either,

Lambchop

iTrader: (1)

Does the mileage matter??

focusjohn

It better not lol 97,000 in 2 years !

1.9 xr2 on 40's

call your finance company, only way you get a definate answer

they may lie a bit tho

Nath

If it's the same how it use to be when I was in that trade then what Grant says is 100% correct.

Iain Mac

Only if you have a mileage clause in the contract.

Mr S1

iTrader: (2)

Correct. all I will say is if you do VT (voluntary terminate) don't be surprised if you can't finance another car on HP....finance companies don't like being handed cars back as there is usually a loss (I work for a PLC finance house) and when we see that, all we will offer is a lease which they cannot walk away from unless they fully settle.

Iain Mac

Get your agreement out and read it, then have it in front of you when you call them so you can refer the person on the other end to the appropriate section - it isn't that common, even now, so he/she may not be familiar with this provision of the Consumer Credit Act.

It should be detailed in a box somewhere close to where you signed and, as above, it is called Voluntary Termination.

RSargie

as mr s1 said, finance companies score you down for having a vt on file just like having missed payments etc. its better to ask the company for the rights to the car, sell it, hen pay off the balance in cash as that way you keep your credit rating intact.
i have recently just sold my car that was on finance althought i used the money to buy another car, the finace company declered no intrest in the car as i had been a good boy! lol