surrendering your car to finance company

[Russ]

i've been informed by my finance company i cant just hand it back now ive paid half, so either they are lying to me, or vauxhall lied to me when i bought the car (i think the latter). they said they'd sell it for me on the open market and i pay the difference, but im worried incase they dont sell it for much and im left paying loads for a car i dont get to use. anybody ever gone down this route? or alternatively does anybody want to buy a corsa

[Zak33]

if you have an HP agreement, unless they've changed it all, you can pay HALF THE TOTAL AMOUNT PAYABLE, and give them 30 days notice of handing it back. They'll prolly ask you to take it to block, and might want to inspect it themselves too, tomake sure it's good condition.

Go track down that sales man and ask for help

Dig out that HP agreement, and look tot he section caled Termintion, Your Rights. It'll have an amount that you need to have paid.

ALso, whatever financial accessories you had (GAP insurance, Life Accident Sickness etc) are NOT taken as payments towatrds the half, so you need to have paid for half the car and the interest and additional payments you've made for other stuff won't count.

It'll need inspecting by them, I'm sure.

[SHare]

Alot of the salesmen seem to be using this, 'take a five year agreement and swap car after 2-3' thing. It works if you trade it in for another car and continue the finance, usually adding a couple of years to pay roughly the same. What you cant do is just hand the car back and walk away without paying any fees. Bear in mind, if you want something from another dealership, tell them the situation and I'm sure they will come to some arrangement with their finance company.

[Zak33]

Alot of the salesmen seem to be using this, 'take a five year agreement and swap car after 2-3' thing. It works if you trade it in for another car and continue the finance, usually adding a couple of years to pay roughly the same. What you cant do is just hand the car back and walk away without paying any fees. Bear in mind, if you want something from another dealership, tell them the situation and I'm sure they will come to some arrangement with their finance company.

different situation dear chap

Consumer Credit Ace allows someone who's payed HALF the TOTAL AMOUNT PAYABLE to hand it back and walk away.

It only started occuring in real life about 4-5 years ago, when everyone was in neg equity as the new car prices started tumbling.

So they're trying to be coming up with clever ways to avoid it.

[herulach]

Thats interesting, does it apply only to hire purchase agreements? Got a link with more details?