Sti spec d

My parents have been looking at getting a new car but the amount owed on the HP of the current car is more than the car is worth. They have been told by the garagre were they are looking to buy from that as they have paid more than half of agreement thay have a right to voluntary terminate the agreement and hand back the car and walk away. Does any one know if this is right as we have never heard of this before and does it affect there credit score?

Thanks

madscoob

iTrader: (3)

this indeed true cant remember the % you have to of paid but look into it you can do this ,, i would advise starting the fresh one with new car before doing it though

RJM25R

iTrader: (1)

as long as the agreement is REGULATED, and more than 50% of the total amount payable has been paid, then YES, you can VT the car Best bet is to ask the business manager at the showroom where they are looking at the NEW car to look at it for them.

Sti spec d

Thanks for the quick replys, i will tell to to speak to the garage they are looking to buy from.

PaulC72

I did it in Septemebt with my astra TT I hadn't paid the half amount so they gave me a figure to get to it which was about £400 I paid that after handing the car back and that was that.
Trouble free easy peasy and all the other sayings

The best thing for them to do is write to the company theyhave the agreement with asking for the termination they will write back with an amount owing if less than the 50% figure, they then arrange for it to be collected on a certain day, just make sure they don't miss the collection date as with VW their are certain charges if things are not met (log book and so on)

I would also look at touching up any stone chips etc just in case, it's worth the touch up pen and time to do it and will show the car has been looked after ;-)

Jamescsti

I did this a few years ago with a Fiat I owned, Paid like £300 to get to the 50% mark and handed the car back, they sent someone out to look at the car and even though it had a minor scrape on the bumper he wasnt bothered. I had to drop it off at a local auction house on behalf of the finance company with log book, keys etc and never heard anything again, I have taken out numerous credit cards, finance and a mortgage since without a problem whatsoever

Jer

I did it years ago. I bought a car on HP over 4 years and handed it back after two years and 60K miles. The car was worth about three grand and I was still due six grand on the car. They came and picked it up and even told me I could go and buy it back and which auction it was going to.
The best bit about it was I traded in a total bucket to buy the car which I also had done loads of miles in. The salesman paid well over the odds for the trade in to clear the finance on it and added it on to the sale price of the new car I was buying.
That's why garages started doing lease hire.

R 14NS R

you can hand the car back but when you do a credit check or some one else does, the agreement will be on it with VT next to it (think they show for 5 years) in big letters. speak ing to our reps for MB finance and black horse one is not to bad, anymore, even though they are meant to make no difference, can tip the balance as to whether they will finance you.

Dedrater

It's called 'voluntary termination' which is covered by the consumer credit act 1974 (which hire purchase agreements under £25,000 are regulated by). As stated you only have to pay at least one half of the total amount due under the agreement including all fees etc then you you are entitled to hand the vehicle back which no ill effects to your credit file.

Any amount paid over the 50% mark in non refundable. Under law your termination date is when you inform the company via letter NOT when they get the vehicle back and they can only ask to to drop the car off within a 'reasonable' distance.