Anyone handed their keys back on a PP purchase
11 January 2006, 07:55 AM
#1
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Anyone handed their keys back on a PP purchase
Buy it from a garage on finance (the type where you have a ballon payment due at the end) and a certain number of months into the agreement you can go back to the garage and hand your keys in saying sorry dont want it anymore.........
Anyone done it?
Anyone done it?
11 January 2006, 08:03 AM
#2
What's the problem with doing that? It's in the contract and if you're prepared to take the hit then why not? Or are you worried about extra costs due to mileage/condition etc?
F
F
11 January 2006, 08:08 AM
#3
Not sure if this is exactly what you mean,
I bought a fiesta from Fords when I was 17, agreed payments and settled on the Fords Options plan. Paid for the car for 3 years and at the end I could:
1) keep the car and continue payments.
2) give them a lump sum (at the time the lump sum was more than the car was worth)
3) hand the car back and walk away.
I went with option 3 in the end, the depreciation was killing the car, there was something like 6/7k owing on a 3 year old fiesta - who would pay that?
hth
I bought a fiesta from Fords when I was 17, agreed payments and settled on the Fords Options plan. Paid for the car for 3 years and at the end I could:
1) keep the car and continue payments.
2) give them a lump sum (at the time the lump sum was more than the car was worth)
3) hand the car back and walk away.
I went with option 3 in the end, the depreciation was killing the car, there was something like 6/7k owing on a 3 year old fiesta - who would pay that?
hth
11 January 2006, 08:34 AM
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Like FitzScoobs story - I bought a clio on one of those 3 year schemes from renault - i continued to pay for a couple of months after the 3 years as I wasn't sure what to do then saw the Scoob in a local garage. I got £4k trade in for my clio when i only owed £3k so the extra paid for my insurance 
. Shame I had been paying over the odds monthly over the 3 years because of renaults rip off scheme 
.
. Shame I had been paying over the odds monthly over the 3 years because of renaults rip off scheme .
11 January 2006, 08:38 AM
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Im not talking about my car.
If you have the kind of agreement fitzscoob is talking about where you pay XXX per month for XXX months and at the end have a balance to pay. You can under the terms of the agreement return the car halfway through (ish) give them the keys and walk away.
Rang the company a couple of days ago and they agreed this is indeed the case. There is an amount of money you have to have got to on your payments and then can do so.
Yes you loose your deposit, but if the value of the car looks iffy in the current market and your thinking of selling then handing the keys back is an option.
Gary
If you have the kind of agreement fitzscoob is talking about where you pay XXX per month for XXX months and at the end have a balance to pay. You can under the terms of the agreement return the car halfway through (ish) give them the keys and walk away.
Rang the company a couple of days ago and they agreed this is indeed the case. There is an amount of money you have to have got to on your payments and then can do so.
Yes you loose your deposit, but if the value of the car looks iffy in the current market and your thinking of selling then handing the keys back is an option.
Gary
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11 January 2006, 08:41 AM
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For example.
An STi bought with minimal deposit for £24K 3 years ago would probably be worth on the current market less than your current owed balance. Before going through the hassle of selling privately its worth ringing the HP company and seeing what the RETURN MY CAR amount is.
Gary
An STi bought with minimal deposit for £24K 3 years ago would probably be worth on the current market less than your current owed balance. Before going through the hassle of selling privately its worth ringing the HP company and seeing what the RETURN MY CAR amount is.
Gary
11 January 2006, 09:09 AM
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I viewed this option during my agreement and Gary is right - as long as you have paid over the set amount (in my case it was 57.5% - don't know why) but after that you are free to drive it to the garage and end your contract - nothing further to pay (no interest payments etc). I just thought - well i'd already paid a lot and to have nothing to show for it would be a waste, but I wasn't going to lose anywhere as much on the clio than if it was an impreza!
11 January 2006, 09:13 AM
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Originally Posted by fitzscoob
I suppose the only thing to check for Gary is if they are going to charge you the total interest of the total amount even if you stop half way through.
If you want rid of the car and owe more than its worth its an option and worth investigating.
11 January 2006, 09:13 AM
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It should actually be printed on your finance agreement what amount of the agreement must be paid before you can return the car but as a rule of thumb i think it is always round about half of the total cost of the vehicle.
11 January 2006, 09:18 AM
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im shure there is a sting to this - u cant just take it back to the garage and say sorry i dont want this no more
Read the small print if i was u cos its sounds rediculous to me
Read the small print if i was u cos its sounds rediculous to me
11 January 2006, 09:21 AM
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Originally Posted by adywrx
im shure there is a sting to this - u cant just take it back to the garage and say sorry i dont want this no more
Read the small print if i was u cos its sounds rediculous to me
Read the small print if i was u cos its sounds rediculous to me
11 January 2006, 09:37 AM
#21
Originally Posted by adywrx
totally pointless
now that what i call throwing ur money away hahaha
now that what i call throwing ur money away hahaha
Whatever the reason, I still dont see it as throwing away money - its more of a long term lease.
11 January 2006, 09:38 AM
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Originally Posted by Floyd
Early settlement clause type of thing?
F
F
Last edited by Silvafox; 11 January 2006 at 09:40 AM.
11 January 2006, 09:40 AM
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Originally Posted by fitzscoob
Not at all, if the car is depreciating faster than it can be paid off then it would be better to cut your losses now.
Whatever the reason, I still dont see it as throwing away money - its more of a long term lease.
Whatever the reason, I still dont see it as throwing away money - its more of a long term lease.
wothe the point in renting a car when u cud own it?
tis like renting a house instead of bying one - DEAD MONEY only winer is the garage or finance company in this scinario.
11 January 2006, 09:40 AM
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i did exactly this on a HP contract a few years ago... had a K plate escort cabrio, was 7k on finance midway through i decided i fancied a change and spotted a MY97 turbo at the same garage where i got the cabrio. was looking at PXing through them and he pointed this out to me as the PX price wouldnt really cover the HP, called the finance PPL and told them i was handing the car back to which they said ok please return to our office before the next payment is due with ALL paperwork included... 
11 January 2006, 09:43 AM
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For example my wife gets a car allowance to buy a car through her company. For her to get her full allowance the car must be under 3 years old. She has an audi A3 which the allowance pays for. Circumstances are changing so the car needs to be changed. The current market value of the car is less than her settlement figure. Therefore if she has payed more than the hand your keys back amount it would be madness to sell the car privately and take a lose when she could just hand her keys back and walk away.
Plus is saves on advertising and having to deal with tyre kickers.
Gary
Plus is saves on advertising and having to deal with tyre kickers.
Gary
11 January 2006, 09:44 AM
#26
Originally Posted by adywrx
a long term lease?? plus the intrest
wothe the point in renting a car when u cud own it?
tis like renting a house instead of bying one - DEAD MONEY only winer is the garage or finance company in this scinario.
wothe the point in renting a car when u cud own it?
tis like renting a house instead of bying one - DEAD MONEY only winer is the garage or finance company in this scinario.
There are ups to renting a car and a house and downs, for certain circumstances.
Thats completely off topic anyway.
11 January 2006, 09:45 AM
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Originally Posted by Gutmann pug
For example my wife gets a car allowance to buy a car through her company. For her to get her full allowance the car must be under 3 years old. She has an audi A3 which the allowance pays for. Circumstances are changing so the car needs to be changed. The current market value of the car is less than her settlement figure. Therefore if she has payed more than the hand your keys back amount it would be madness to seel the car privately and take a lose when she could just hand her keys back and walk away.
Plus is saves on advertising the key and having to deal with tyre kickers.
Gary
Plus is saves on advertising the key and having to deal with tyre kickers.
Gary
thats the way to go then.....
11 January 2006, 09:46 AM
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Originally Posted by Silvafox
On my agreement I could give the car back at any time but had to pay £1700 in early termination charges.
Gary
11 January 2006, 09:49 AM
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Originally Posted by Spec'c'57
thats the way to go then..... .... Still an option though.I think the fact that people are ignorant of it means its a little known fact. I didnt realise until the father in law pointed it out over crimbo.
Gary