car finance

[bluebird1927]

i am unable to keep up with my car finance, i'm only 2 years into it, could i just give the car back

[CushtyFred]

what car you got?

[scotchollie]

Sure you can.

And then they'll work out how much they've lost by the loan not coming to it's full term and bill you for it - plus all the expenses of doing so.

Oh, minus the cost of the car, which will be sold for a pittance at auction.

Add to that the adverse credit info which will be added to your credit file and you can kiss goodbye to credit cards, bank accounts, mortrages and loans for the next 6 years.

Get on the phone, tell them the score. Be honest. Ask them if you can come to an arrangement with them and if they will accept a third party buying your car if you can sell it.

You need their permission for this as they have to waive their interest inthe vehicle on sale. Declare the fato that it is an 'on finance' sale to any prospective buyer and get them to make the payment to the loan company on your behalf.

Remember, it's always much better to keep the company informed, than have them chase you.

Trust me, I had to do exactly this when my marriage failed a while back and it's much less trauma than you might imagine.

And it protects your credit file.

[bednobs]

look at your contract. if you did one of those leaser typoe arrangements whereby there is monthly payments, plus a balloon figure to pay at the end, you may be able to

[Oneeyedvic]

If it is on a Hire Purchase agreement (not a loan) and you have paid over half the total amount under the credit agreement, then you can hand the car back under Voluntary Termination.

Have a search for your agreement and you will find a "halves" section on the document (if it is HP agreement). Work out if you have paid that amount and if so ring them up and tell them that you want to VT.

If you haven't paid half, then follow the advice above.

[erimus1]

If you can't afford the payments, see if you can refinance with the same company - it will cost you more in the longrun, but at least you would be able to reduce your payments and keep the car.