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I have still over a 1 year off payments due on my vauxhall vectra, but want to get a new car. I have £2000 of savings which I could use to pay off car finance or put towards new car. It was suggested that I could hand my car back to finance company as i've paid more than half. Has anyone done this? Does to go against my credit rating? Whats the down falls? Can anyone help?
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Yes, if you have paid more than 50% of the total credit price (cost of car + cost of credit) then you can hand the car back to the finance company and walk away.
Some people will tell you it puts a 'black mark' on your credit file. It doesn't. Your file will be updated with a flag known as 'Voluntary Termination'. This is not negative, merely informative.
Since I handed my Saxo (uggghh) back in 2001, I have not been affected at all. If you have a good historic credit record then it shouldn't affect you at all.
The only thing to mention is watch out for charges if the car isn't in tip top form. Whether you take it to the auction house that deals with the finance company, or pay them to pick the car up, make sure you hover as they fill in the condition form and check everything 10 times....
DB
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The car does need some work on it unfortunately, but if it looks alright from the interior should it be alright? If not will they come chasing me for money if they don't sell the car to clear the outstanding finance I had left over. Also do they check the car while am still with it or will they take it to garage then report back. Sorry for confusion but really don't want to be caught out.
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I've done this twice, once after 50% of the finance had been paid. I had to take the car to the local car auction where I imagine it was sold straight on. No one checked it, all the auction staff treat it as a repossession!
The second was at the end of a PCP. I cleaned the car and it was picked up by someone who drove it to a depot in Derby. It was quickly checked on pick up and then we received a letter informing us all was OK.
no affect on credit rating.
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The Lex site has (or at least had) a good guide to 'acceptable' damage on return, with photos, etc.
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The car does need some work on it unfortunately, but if it looks alright from the interior should it be alright? If not will they come chasing me for money if they don't sell the car to clear the outstanding finance I had left over. Also do they check the car while am still with it or will they take it to garage then report back. Sorry for confusion but really don't want to be caught out.
The eventual selling price is not material to the transaction. A vehicle condition report will be completed in your presence and any items requiring refurb will be agreed with you. They aren't looking for a new car, but it has to be reasonable for age/mileage and demonstrate that some care has been taken. Badly scuffed alloys will cost you big time. In fact badly scuffed anything will cost you, including wheel trims (main dealer for a couple wheel trims? That will be £90 please.)
Reconditioning costs will be agreed later and billed to you.
I take it from your comment that the outside needs some TLC. You are responsible for this and the finance company will bill you for it at main dealer rates.
Better to look at getting the car patched up before either p/ex or voluntary termination or your £2k could rapidly find itself in your finance companies hands.
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Their are scratches on doors and wheel trims are scuffed. Problem is don't really know much about cars to get fixed or how to get fixed. Think might hang onto it until paid it off, don't want to get in over my head. Thanks for feed back.
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Get Chips Away to give you a quote for fixing the scatches. If reasonable, get it done, get the car valeted (about £50) and see how the car looks then.
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Hi
Came across this thread and was wondering if anyone had handed back a Car on a PCP
I have one of these which runs out next May. SO was wondering if it was only HP agreements which allowed you
to hand back or Does the same apply to PCP's
Thanks for any advice
Regards
Ian.H
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In most, but not all PCP contracts, there is a settlement figure payable - if very early it can be expensive.
IN PCPs it is possible to buy a get out of contract for an optional fee but that is at the beginning not the middle of the period.
Even at the end of the contarct there can be fees for scrapes & scatches and internal tears etc that are not fair wear & tear.
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Hi
Thanks for the Info. I suspected their might be more to it than a Regular HP agreement.
May have to keep it till the end of Contract
Thanks again
Ian.H
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