Finance - Volountary Termination?

[bradtate]

Anybody done this or know someone who has? Know how it works? Went into Renault earlier on today to ask about it and they just tried to make me refinance another car and then offered me a job there as a salesman lol

Any help would be much appreciated

Brad

 

[Steve Murr]

Anybody done this or know someone who has? Know how it works? Went into Renault earlier on today to ask about it and they just tried to make me refinance another car and then offered me a job there as a salesman lol

Any help would be much appreciated

Brad

Terminating finance will only ever work 2 ways-

1) Settling the full debt-

2) Giving the car back at agreed price & taking the equity back or paying the negative equity back-

When a dealer gets whiff you want out of a deal then will ensure the offer on the car is low because they know you are struggling with payments.

Any early finish to a finance deal is subject to possible admin charges & interest charges.

S

 

[bradtate]

Thank you mate I appreciate that. Renault told me that I would need to pay 2 and a half grand to give the car back but they also said if I ring the finance company direct then it may be less than that. I have £1500 to give if necessary but if its £2500 then I'm going to have to find £1000

 

[carbonfanatics]

Check the agreement.. you may be able to just hand it back if you have paid at least half and taken "reasonable care" of it.

 

[Rogue]

Arhhhh i'll miss driving past your car

 

[Dutters]

I thought that if it was a PCP deal, if you have paid more than half of the finance agreement that you can hand the car back no questions asked?

 

[ryan197]

fiance and pcp are completly different

 

[Mentalpen]

Are you talking about handing it back after half of the finance is paid off?

 

[nutnutwelshman]

I had pug 406 and gave it back after half way on HP

 

[deadmau5]

I had pug 406 and gave it back after half way on HP

You did well to last that long :tongue_smilie:

 

[Robo_#1]

I had pug 406 and gave it back after half way on HP

You did well to last that long :tongue_smilie:

Your not wrong, we had a 407 for work it was so bad it ended up sat in the workshop. It was always broken, drove like sh*t and all the trim fell off.

Staff would drive their own cars at cost to them rather than take that thing home!

 

[Bootsock]

Check your finance agreement, assuming it's regular automotive insurance which should be secured on the car (e.g. Renault Financial Services) there will be a 'termination' section in there, if you've paid more than 50% of the car off you should be entitled to hand the car back and walk away.

Keep in mind that this is 50% of the 'total amount payable' i.e. if it's a PCP, it's the full value of what you borrowed including the final 'balloon' payment and you may be quite short of what you need. If it's straight HP and you had a decent part exchange car or a reasonable deposit it's easier generally to work the figures out and you are normally close to the (50%) figure you need sooner.

It can be quite handy especially if you are in a straight HP agreement and facing fairly catastrophic depreciation, although of course finance companies don't really make a big effort to tell you about this clause...