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canceling car finance

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Joanneb | 09:47 Tue 19th Oct 2004 | Business & Finance
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Last november i brought a car on finance, I am struggling to afford the car how do I stand with regards to canceling the finance?

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I'm not 100% sure on this but I seem to recall that on most of these car finance deals there is a provision that you can hand the car back if you have paid less than half of the loan back. Like I say I'm not 100% sure but if you check your paperwork it should be in there somewhere. Alternatively just call the finance company and ask them.

THere is a provision in the agreement (based on a regulated hire purchase) called the halves rule - once you have paid half the amount of credit you can hand the keys back to the finance company.

 

If your car was finance through someone like blackhorse though it wil be a loan and not a hirepurchase - this means you have no halves rights. Look at your original agreement.

 

I have recently terminated my agreement with the company that i purchased the car from. The'pay half' rule should apply but be warned if you have paid more than half of the car you will not get a refund.....as i found out! You will be asked to drop your car off at a garage along with the cars documentation. Don't arrange for the car to be collected from your premises as you wll be charged around �150 for this.
I too was struggling to pay my car finance and handed it back after paying half. I had to hand it to British Car Auctions. There they had plots for all the different car dealerships that had had cars handed back and there were loads of cars. Theoretically, if you had the cash or able to get a more reasonable loan, you could buy the car back at auction and save money on the finance deal you set up in the first place. I wonder if this is possible?
hi,if ive taken out an agreement with a ballon payment at the end of it ,can i still cancel the agreement halfway through

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