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.

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.

[Viney]

Originally Posted by Stewart.C

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.

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.

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

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

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!!!

[the_lone_wolf]

Originally Posted by speedplay

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

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

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

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

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.

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.