anyone handed a car back before?
 

Im sure this has been asked before but cant find it.

Anyone know what the car finance company will ask for when i exercise my rights by handing my car back to them?

i have a 04 Mini Cooper that sits outside my house doing nothing all week & cant get enough for trade in to exchange.

my plan is to hand it back & pick up an old 4x4 for towing my horses & genral use that i cant use my bike for.

the car is in very good nick.


cheers

Re: anyone handed a car back before?
 

it will specific to the finance company..

expect to be screwed

Re: anyone handed a car back before?
 

im with Northridge if that helps

Re: anyone handed a car back before?
 

My Mom done the handing back thing years ago on a astra and got shafted (no jokes please as she is no longer with us) and the finance company would only settle the amount owing if there was money on top of what the car could be sold at auction.
I think there was something like £2600 owed, they said car was worth £2300 so a shortfall of £300.
At the time they were selling for £3000 easy, she done it without looking at the options or asking me about it.
Still makes me angry now 18 years later.

Re: anyone handed a car back before?
 

I don't know any Astra jokes...
:smt102

Re: anyone handed a car back before?
 

Probably just as well then :smt072

Re: anyone handed a car back before?
 

Someone I knew handed back a ZX7R that was immaculate, the finance complany are still trying to screw him for about 2 grand. The bike was on 5 years finance and he pulled out 2 years in. They claim they sold the bike for a fraction of its Glasses Guide value, and he's liable for the shortfall. He's claiming they undersold it and won't pay up.

2 years down the line he's still fighting them.

Re: anyone handed a car back before?
 

How much is owing on the finance and how much is the car worth?
Im sure a mate could buy it for a good deal to clear the outstanding amount if its an 04 it cant be a huge sum...

Re: anyone handed a car back before?
 

What model spec value- I am sure most garages would give you a better deal than the finance co against a big 4x4 which are difficult to shift especially with recent rises in cost of fuel.

Re: anyone handed a car back before?
 

2004 04 cooper glass roof, multi func steering wheel, cruise control, 65000mls,

think i still owe about 6k worth about 4.5k.

ill maybe see a few dealer up here again & see if i can get a better deal. ever 5th car you see up here is a mini.

Re: anyone handed a car back before?
 

I'm not really clued up on this but can't you sell the car then just keep paying up the monthly payments?

Re: anyone handed a car back before?
 

the problem ith that is id be paying for a car i didnt have

Re: anyone handed a car back before?
 

Yeh but you owe the money. You agreed to pay that money when you entered the contract. Just because you don't have the car any more doesn't mean you stop owing the company money. Either keep the car and use it until the finance it done, or sell it and pay off as much of it as you can
I'm in a similar situation with my golf. I don't want it, I'd rather get a cheaper car. But I've still got a few years of finance to pay

Can you pay the finance off in a lump sum?

Re: anyone handed a car back before?
 

Nobody in their right mind would buy a car with outstanding finance:-s

Re: anyone handed a car back before?
 

Well that's what I was asking. If I sell the car does the finance "stick" to the car? Or does it just become like a loan

Re: anyone handed a car back before?
 

Finance is a loan, usually secured on the vehicle, if you were to buy a car and the previous owner said they'll pay the remaining finance every month and they didn't you'd lose the car=;

Re: anyone handed a car back before?
 

Right so you'd have to pay the finance off in a lump sum before you sold it?

Re: anyone handed a car back before?
 

Finance car is owned by the finance house.

So if you sold it and didn't pay it could be repossessed...

No one would buy a car with finance outstanding coz they are not the legal owner...the finance company is and they can take the car back and not a thing can be done.

I have one year left on finance and by God's grace I never do anything as stupid again.

Re: anyone handed a car back before?
 

Did it on a saxo a few years back - if you got the car on pcp or outright visit the garage you bought it from their finance people can work it out for you. With the saxo I could hhand it back once I had paid back 50% of the finance taken on it. Once past this I didn't have to pay any money. Other option give the finance company a call in the morning.

Re: anyone handed a car back before?
 

What if the car had an "accident"...
Would the insurance cover what was left on it?

Re: anyone handed a car back before?
 

2nd hand car prices are increasing in value for the first time i heard on the news the other day.
Due to the scrappage scheme, companys holding on to their fleets longer, no one buying new, its created a shortage of 2nd hand cars.
Dealers cant buy them in cheaper enough now, so their margins are crap.

Other option, take a cheaper bank loan, car finance generally is more than banks so that would reduce the overall debt.

Re: anyone handed a car back before?
 

My advice - Sell the car for 4.5k and borrow 2k to pay off the finance and buy an old toyota with the change. (don't get a land rover unless you like to fix things) And get rid of the horses.

Re: anyone handed a car back before?
 

1st off, are you estimating that outstanding ammount, or have you obtained a 'Settlement' figure form the finance company? If you hevent then do so. Dont take it that your total ammount to be paid, less what you have paid will be the figure. They will deduct the interest payments that you would have paid over the following years, this will reduce your outstanding balance and may make it worth while trying to sell. IF you want to sell the car, then try to obtain the balance on a personal loan and settle the car, then that way you can sell the car without any come back or it showing up on a HPI type check. The finance will be attached to the vehicle, unless you brought it with a loan. Car finance looks cheap but its vey unflexible. Then when you sell the car, pay off the loan. Its a bit of a fudge, and a loophole, but i have done it once in the past. Car value are allegedly going up, and the Mini is a sought after car in the right colour/spec etc, so you should be able to sell it. A mini for £4500 is very cheap! Cheapest i have seen for a base Mini One is about £5500 localy.

Re: anyone handed a car back before?
 

BMW------My next door neighbour had a six month old 1.8sport[6000miles] but got offered a once in a lifetime opportunity,a three year contract in Australia.Went back to BMW and if they wanted to return the car they would have a £5000 deficiet
Talk about being screwed**********
Rather than loose all that money I have the car safely locked away in a garage for when they return in 3years

Re: anyone handed a car back before?
 

Check finace agreement i've just 'returned ' an Accord as i had a break clause 2 yrs into 4 yr aggreement

Be prepared for the finace Co. to bitch and winge even if you can do this they did eveything in thier power not to take it

in the end though they sent a lorry took it stratight to auction when it was immaculate

They in this case lost inxs of 2,000

Re: anyone handed a car back before?
 

depends what finace agreement u have in place on the vehicle. as some have said some have get out clauses, where by if you have paid off 50% of the original ammount you can exercise the right to just hand the car back to te finance company. these are generally on HPI or PCP deals, best bet is to phone the finance company and speak to them to see if there is that option, or read your finance agreement!!!

Re: anyone handed a car back before?
 

Unless you took out additional insurance then no, a normal policy will only pay out the market value of the vehicle

Re: anyone handed a car back before?
 

Ok, I have handed a car back to the finance company.

You can do this (it's written into all agreements) if you have taken out normal car finance, you cant do this if its a personal loan.

It's called Voluntary (sp) termination, look at your finance paperwork and it will be at the very top!!!

So long as you have paid back at least half of the total finance figure you can just hand the car back without any problems.

In 2002 I bought a new MG ZS which I took out over 5 years in 2004 MG/Rover went under making them impossible to get rid of and I ended up in huge negative equity. I waited until I was 2.5 years into my finance, wrang them up and told them I wanted to VT the car, I answered a few questions, 7 days later my car was collected, end of!

10 days later I went out and bought a brand new Ford Focus :D

VT does not affect your credit rating, you are within your rights to hand the car back so long as you have paid off at least half of the total finance!!! It is written into your finance agreement.

Good luck

HTH

Re: anyone handed a car back before?
 

I've done it in the past.

Two years into a four year finance plan, I chose to hand back the car.No penalties incurred as per the contract. I guess though it depends on the finance plan.

Re: anyone handed a car back before?
 

Sure you got price right for your motor seem to be 6-7K on autotrader. who gave you value.Try to sell privately but get buyer to pay money to finance company.

Re: anyone handed a car back before?
 

I sold my astra on Autotrader whilst still owing over a years finace on it. When I got the cash for car I rang the finance company (GMAC in this case) and paid the settlement over the phone.

Just goes to show that people don't check into these things.

I wouldn't buy a car with outstanding finance.

I'd sell it private and pay a lump sum off then just pay a lower monthly payment until the end.

Have you tried webuyanycar.com and such like, they don't offer nearly as good price as selling private but if your after a quick sale it may be worth a look.

Re: anyone handed a car back before?
 

i've just been on webuyanycar.com and making some assumtions as I don't the exact specs (MET paint and colour etc) I got a quote of:

Thanks for valuing your car. Your valuation is £5,250 and webuyanycar.com would be delighted to buy your car straight away.

for an 04 1.6 Mini Cooper Hatchback Manual in Silver no mettalic paint

Re: anyone handed a car back before?
 

i'd say your best option is to go personal loan and get rid of privately. Put a tidy value on it and see how much you can save, also try to save a bit of cash in the swap over period so you can save some money by borrowing less.

So if by the time you buy a cheap run around, pay some money off the loan your left with £3k hole say then at least your rid of.

But this "VT" sounds good.