Handing Back a Car?

[ColinJWatson]

Hi,

 

I am wondering if anyone knows the technicalities of handing a car back to the finance company?

 

My Car still works, but it needs a bit of work done on it, and to be honest, I use First Response Finance, and its not worth paying for the work against the amount of finance I pay each month. I took the car over 2 years, and I still have around 14 months left to pay. We have another car, which we feel we can get by with. But I am wondering, has anyone ever handed a car back? And what are the implications of handing a car back? Does it difir from company to company?

 

My Credit rating should have imporved in the next 4 months, so I will be looking to take decent credit to get a car from a good company after then. Any advice would be appreciated.

 

Kind Regards

 

Colin

[buzby]

Really depends on your agreement with the finance company. Your contract will stipulate the options available to you. As you haven't even completed half the agreement, there isn't much scope for a negotiated withdrawal. The finance house only look to the money, not the vehicle. If - by your own admission is isn't worth repairing - the company will want the repayment of the loan. Since the car isn't of much use as security, they'll chase you for the balance of the money owed - irrespective of whether they get the car back or not.

[ColinJWatson]

Thanks Buzby, looks like I will need to try and trade it in somehow

[buzby]

That's the best way to help heep its value up. Do remember it will show up in an HPI check as being financed, and that the DVLA will notify them if any details change of the V5 (say a change of keeper).

[ladad]

Hi new to site ,can anybody tell me if there is a letter format for handing back car under the hire purchase agreement i've paid more than half,but not sure as to word it,my garage won,t tell me as it against financial rules?

 

Cheers

[buzby]

There isn't a 'standard' letter as you need to be guided by the agreement you have, and for completeness, quote the relevant section of your agreement that you are using to repudiate the arrangement.

 

Look out for your obligations under 'Cancelling this Agreement' (or similar) and the hoops you need to jump through to hand it back.

[postggj]

Hi new to site ,can anybody tell me if there is a letter format for handing back car under the hire purchase agreement i've paid more than half,but not sure as to word it,my garage won,t tell me as it against financial rules?

 

Cheers

 

 

youn need to send the finance company a letter stating you wish to do a voluntry termination of the agreement

 

its all there on the agreement about ending the agreement

 

they dont like it so send the letter recorded delivery

[crem]

I have just set a termination away against one of my cars using the letter below. Feel free to copy it and "tweak" it to suit your needs. I was given the fax number of the VT department by my local dealer who even offered to fax it down for me.

 

 

I had a letter the next day confirming I could indeed proceed with a VT.

 

 

 

 

Dear Sirs

 

Account Ref: 123456789

 

With regards to the above mentioned account that I hold with you against a [Make Model Car], I wish to exercise my right to Voluntarily Terminate this agreement as stated within the contract terms.

 

Having paid approximately £x,xxx to date up to and including a payment dated 1st Month 2010, this figure being in excess of the 50% value of £y,yyy as stated in the contract, I believe this course of action is allowable at this time with no further payment being due from me.

 

Please note, the cherished number plate of A999 AAA previously showing on this vehicle is currently under the process of being transferred off the vehicle by the DVLA. The new “standard” number they will issue against the vehicle is not yet known to me. However, I will of course, make you aware of this new number as soon as it is provided. The chassis VIN number of AAA21654DDE654AA remains unchanged.

 

Please confirm by return that the above is acceptable to you and advise what action you require me to take to return the vehicle to your authorised dealer or agent.

 

Yours faithfully