Hi guys, As I'm getting nearer to halfway on my finance I'm pretty sure I will just utilise the hand the car back option.

My question 1: I have changed the original wheels for larger alloys. And sold the old original alloys. Is this going to be a problem?

2: I have her remapped. Should I go get it put back to standard?

3: I blew the turbo as soon as she was out of warranty!! So I bought a recon, and an indie fitted it. No paper trail.. Will they find out? Would this affect me handing her back??

Thanks guys:)

You might find big problems here... They weren't your alloys to sell, it wasn't your ecu to remap...

So buy the old style alloys back. Un map it. Then hand it back?

Or just pay the car for a few more years.. :(

Buy the old alloys back and get the remap off it

Then hand it back

I take it you are on PCP?

 

get a settlement figure first and see if you can sell it, even some car dealers might be interested in buying if it is a tidy example

I take it you are on PCP?

get a settlement figure first and see if you can sell it, even some car dealers might be interested in buying if it is a tidy example

Hi, I'm not sure what I'm on? I'm only learning as I go. Only learned I could give the car back halfway through and not get bad credit off here. (Great forum)

I just got credit to buy the car. Put down a deposit and got finance off the garage for rest. I was reading my finance agreement after reading posts here and sure enough, in black and white it says I can hand it back... If that helps?

I was thinking of getting a settlement figure, then borrowing off the bank as they offered me 5.2 ish % which is less than I'm paying on finance..

But I will be losing money if I do it that way.

Thanks for replys guys. Was not sure about it, re alloys etc. I sorta knew they wouldn't like the map!!

Are the new alloys more desirable and worth more than the original ones? 8f so you might find someone willing to do a swop for some originals.

I think they are, and yes what a great suggestion. I know when I was looking for these black alloys 18" that if someone said ill swap my black ones for your standard 16s I would of thought Xmas had come early!

Great suggestion. Thank you.

Hold that thought. Although in theory it doesn't affect your credit..in reality it does. The finance companies can see you have voluntery terminated and will use it against you (from experience)

I handed one of my cars back which was on hire purchase. In the small print it stated that in the event of you using the half rule etc that you would be subject to a 8k a year mileage limit and any additional was at an additional cost. Not only that but when they picked the car up they charged me for every dent, scratch, curb mark. They tried to charge me £100 for not having full history but won that as it never had full history when I bought it. Also the garage I bought it from put the incorrect mileage (less) on the finance paperwork so when they added he extra on I owed loads. I successfully won that argument by pulling out the mot and paperwork for when I bought it showing that it has 20k more miles on it at purchase.

I would advise against it personally and keep paying it off or get a dealer to pay you enough to get out.

you sure?

 

I don't see how you have voluntarily terminated anything... if the contract states x deposit and 35 additional payments of xx with an optional final payment then you have fulfilled the original agreement.. So how can you be penalised for not taking that extra option? and why would that even appear in your credit history since its not additional credit but simply a purchase?

Because you are ending midway through the agreement. You are referring to the final optional payment, the OP is looking to get rid mid term prior to that option to hand back or pay the final payment.

There's two types of finance. HP and PCP. With HP there is no final optional payment. You pay equal amounts each month and at the end you own the car. You can terminate early once you have paid 50% of the total due (interest, deposit etc.) This is what I was referring to.

PCP is smaller payments followed by a final optional payment where you can either pay it and keep the car or hand the car back and as long as you haven't gone over miles etc then then are no additional costs. I beleive you can terminate early on this type of agreement too..but I'm not 100%

Ahh oh dear that'll teach me not too read the first post.. missed the half way part

 

In that case I fully agree with you!

 

I've never bought a car on finance myself (considering it next time) bit baffled by the notion of handing a car back half way through a finance agreement though and can only think of 2 good reasons why you'd want to.. either you don't like the car anymore or circumstances have changed and cant keep up with the payments

 

 

each to their own

In my case the vehicle was very unreliable and it was costing more to keep it on the road. So I cut my losses.

Ahh oh dear that'll teach me not too read the first post.. missed the half way part

In that case I fully agree with you!

I've never bought a car on finance myself (considering it next time) bit baffled by the notion of handing a car back half way through a finance agreement though and can only think of 2 good reasons why you'd want to.. either you don't like the car anymore or circumstances have changed and cant keep up with the payments

each to their own

Baffled?

The option to hand back the car half way through, in my case 2 years of a 4 year finance, is built in by the government. My car is worth less than the finance I owe on it. It's a no BRAINER.

Also. After 2 years yes I am a bit bored. FYI I can afford the repayments. Thanks anyway for your insight.

Whether HP or PCP, handing a car back which is worth less (trade) than the amount of finance outstanding will indeed give a negative credit score, unless of course you make up the difference.

 

There well may be a clause that states that you can terminate halfway through the agreement, but the terms and conditions will stipulate that the early settlement figure is secured by way of car value (bottom book usually) with the customer making up the difference (if any).

 

Whilst in theory you can just hand back the car and walk away, the finance company will vigorously pursue the debt, first by correspondence, then bailiffs then court order - and you don't really want that to happen.

 

Get a settlement figure from the finance company, a trade value of the car from the dealer and a loan for the shortfall.

 

Edit:

Apologies - I am wrong and am man enough to admit so. Just going off of previous experience, and was obviously not up to speed with current consumer law.

Easy tiger, I didn't suggest you couldn't afford it.... far from it.

 

Personally speaking, I had no idea you could do this and I don't know anyone that has done so. chris_1d had a clear reason for doing so that makes sense

Whether HP or PCP, handing a car back which is worth less (trade) than the amount of finance outstanding will indeed give a negative credit score, unless of course you make up the difference.

There well may be a clause that states that you can terminate halfway through the agreement, but the terms and conditions will stipulate that the early settlement figure is secured by way of car value (bottom book usually) with the customer making up the difference (if any).

Whilst in theory you can just hand back the car and walk away, the finance company will vigorously pursue the debt, first by correspondence, then bailiffs then court order - and you don't really want that to happen.

Get a settlement figure from the finance company, a trade value of the car from the dealer and a loan for the shortfall.

It's not a clause: I'm surprised you seem to have not heard of this before?? Very surprised? You seem to have wrote loads on bailiffs etc but can you tell me where you are getting this from??

Handing a car back when over half is paid is very common. It's ACTUALLY part of the consumer credit act.

I've never heard of the things happening that you wrote? Could provide any facts on this?

There are actually a few posts on here to do with this, I just can't be bothered to go back and paste them.

Maybe I'm wrong

Ps: owing more on car than it's worth not a good reason? To the chill pill tiger lad? Ok then.

Voluntary terminating. Credit file unaffected. FACTs not fiction girls.

Voluntary terminating. Credit file unaffected. FACTs not fiction girls.

Wrong. As I've said. Been there done that. Experience shows it does affect your credit file. Fact.

Whether HP or PCP, handing a car back which is worth less (trade) than the amount of finance outstanding will indeed give a negative credit score, unless of course you make up the difference.

There well may be a clause that states that you can terminate halfway through the agreement, but the terms and conditions will stipulate that the early settlement figure is secured by way of car value (bottom book usually) with the customer making up the difference (if any).

Whilst in theory you can just hand back the car and walk away, the finance company will vigorously pursue the debt, first by correspondence, then bailiffs then court order - and you don't really want that to happen.

Get a settlement figure from the finance company, a trade value of the car from the dealer and a loan for the shortfall.

Again, the finance company will not come after you etc etc if you VT. It is a legal right and as long as you have paid 50% of the total amount payable AND taken reasonable care of the vehicle then you will pay no additonal costs. They pick the vehicle up and sent it off to Auction or direct to a garage.

You have scared the op off with all of this internet willy waving...

 To him.... read ALL of the small print on your finance agreement before you decide to do anything, they all differ, dependent on the company you got finance with, then speak to them, explaining your situation, whatever it is.

 Then decide what is best for you.

 DON'T Whatever you do, take the advice of some faceless eejit on an internet forum........

There isn't really such thing as a credit score, some of the credit scoring companies will try and convince you there is by giving you a relatively meaningless number but in reality companies will generate their own internal credit score which will likely vary as they have different priorities.  A Voluntary Termination (VT) is allowed as part of some finance types and it is recorded on your credit file which a company can see if you make a credit application to them but it's not considered a negative (like a default, CCJ, arrange to pay etc. is) although some companies may choose not to offer finance if you have a VT while others aren't bothered.  I've no idea what the overall numbers are but for specific finance advice, the moneysavingexpert forums are a good place to look.

 

With regards to the original question I'd try and keep the car as stock as possible as some of the companies rack up the charges when the car is handed back and not in perfect condition so I wouldn't want to give them that chance particularly as it can work out a lot more expensive if they sort the car out.  I can't see the turbo being an issue if it's the same part.

 

John

You have scared the op off with all of this internet willy waving...

To him.... read ALL of the small print on your finance agreement before you decide to do anything, they all differ, dependent on the company you got finance with, then speak to them, explaining your situation, whatever it is.

Then decide what is best for you.

DON'T Whatever you do, take the advice of some faceless eejit on an internet forum........

Amen!

There isn't really such thing as a credit score, some of the credit scoring companies will try and convince you there is by giving you a relatively meaningless number but in reality companies will generate their own internal credit score which will likely vary as they have different priorities. A Voluntary Termination (VT) is allowed as part of some finance types and it is recorded on your credit file which a company can see if you make a credit application to them but it's not considered a negative (like a default, CCJ, arrange to pay etc. is) although some companies may choose not to offer finance if you have a VT while others aren't bothered. I've no idea what the overall numbers are but for specific finance advice, the moneysavingexpert forums are a good place to look.

With regards to the original question I'd try and keep the car as stock as possible as some of the companies rack up the charges when the car is handed back and not in perfect condition so I wouldn't want to give them that chance particularly as it can work out a lot more expensive if they sort the car out. I can't see the turbo being an issue if it's the same part.

John

Thanks John.

Whether HP or PCP, handing a car back which is worth less (trade) than the amount of finance outstanding will indeed give a negative credit score, unless of course you make up the difference.

 

There well may be a clause that states that you can terminate halfway through the agreement, but the terms and conditions will stipulate that the early settlement figure is secured by way of car value (bottom book usually) with the customer making up the difference (if any).

 

Whilst in theory you can just hand back the car and walk away, the finance company will vigorously pursue the debt, first by correspondence, then bailiffs then court order - and you don't really want that to happen.

 

Get a settlement figure from the finance company, a trade value of the car from the dealer and a loan for the shortfall.

I'm sorry but this ^ is nonsense.

The ability to VT an agreement once 50% of the total owing has been paid is a contractual right. It's enshrined in the terms and conditions of the finance agreement and in no way whatsoever affects your credit rating.

Of course simply parking the car outside the finance companies office, posting the keys through the letterbox and cancelling your direct debit payments will get you into hot water but nobody is suggesting that. :-)