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car finance help

i have done the math on my car finance and decided it would be better for me if i didnt have the car what are my options as i dont have the money to pay the outstanding balance but dont care if i lose the car. what will it do to my credit rating if i just gave the car back?

wufuss Sat 06/09/08 20:57

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Ethel
Sat 06/09/08
22:03

First of all, did you buy the car with a personal loan or hire purchase? It makes a difference.

When did you buy the car, how long was the finance for and are you up to date on the repayments?

wufuss
Sun 07/09/08
07:16

Question Author

i bought the car with a personal loan 2 and a half years ago on a 5 year plan and i've not missed a payment yet

Oneeyedvic
Sun 07/09/08
07:36

Since it is a loan (as opposed to Hire Purchase), then the vehicle is yours and yours alone. You cannot hand the vehicle back as the finance company have nothing to do with it- they just gave you some money which you chose to spend on a car.

If you stop paying, then you will be in arrears and then in default. The loan company will take you to court and have a county court judgement issued and then may ask for an "attachment of earnings" order which means that your employers would pay deduct money from your wage to pay the the finance company.

Try selling your car privately and hopefully pay off your loan with the amount that you receive.

(just as a quick thing, make sure you double check your finance document to ensure it was a Loan and not a HP agreement - it will be printed on the top).

wufuss
Sun 07/09/08
07:39

Question Author

i kinda figured that was the case and spent hours looking on the internet for the answer thank you for your time you've helped me a lot

Leachy10
Sun 07/09/08
23:30

Set it on fire and claim the insurance.(dont tell them i told you to)

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