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I wonder if you can help me. My partner bought a brand new Lexus RX400 from a Lexus dealer in 2006. She is currently experiencing cash problems and I wondered if it is possible for her to hand the car back to Lexus and walk away? She has been paying £600 a month with a £10,000 deposit. Could you help and advise of our options?

Asked on 12 June 2010 by GJ, via email

Answered by Honest John
As long as it's an HP agreement and not a PCP, once you pass the point of 50% you can hand the car back with nothing more to pay as long as it isn't damaged. But the sums are £10,000 + £7,200 a year for at least 3 years (£31,600, maybe more), which means she can't be far from paying it all off. An 06 basic 400h still trade books at £18,775, so I think she has more equity in the car than 50% and it would be foolish to throw that away.
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