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Handing a car back to a finance company

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evilfish5000

Passed Driver's Ed
Location
Kkkkkk
Has anyone ever handed a car back to a finance company before?. I'm due to pick up a gtd in the next few weeks problem is I have a corsa that is worth less than the finance owed on it. Now I am able under its finance agreement I can give the car back to ththe finance company without penalty I'm just wondering if anyone has done this before.
 
Avanti

Avanti

Go Kart Champion
Location
UK
evilfish5000 said:
Ive paid over 50% of the value thats fine I just wondered if anyone has done this themselves and there experience of this.
Click to expand...

Probably better asking on MSE, the romance of it sounds great, but I doubt in practice it will be as pretty as you imagine.
Have a look here
 
paulgarnett6

paulgarnett6

Ready to race!
You will still have to pay shortfall if car is not worth what you owe them so if they auction car for 3000 and you still owe 3500 you will pay shortfall of 500.


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paulgarnett6

paulgarnett6

Ready to race!
Seem my previous thoughts are wrong after reading link above you can just hand back regardless of negative equity very strange as cars lose value quickly


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Jens0n

Jens0n

Go Kart Newbie
Location
United Kingdom
Assuming you are in the UK,
speak to the finance company, as banded before 50% or more paid and you should be within legal rights, however, if you are defaulting on an agreement at said finance companies disapproval, you might well find they score credit mark against you which could make it difficult to obtain future credit (PCP/Lease).
 
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evilfish5000

Passed Driver's Ed
Location
Kkkkkk
I've been checking that how it might effect my credit rating and apparently unless I try to get finance from Santander in the next 3 years I may be refused but the lease for the new car is 3 years so no really loss.

Has anyone at all actually done this and given a car back?
 
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Blighty

New member
Location
UK
Ive done this. 3 years ago I handed back my Alfa 147. I was over 50% through the finance and it spent more time on the ramps then on the road.

The process is called Voluntary Termination.

I called up the finance company and told them of my intentions and that i wished to voluntary terminate. They arranged for the car to be collected and that was that. Rather simple. No hidden nasties at all. It is your right to do this providing you inform them of the intention and have paid over 50% back on the finance.

To be honest i was glad to get shot of the Alfa, lovely car when I could drive it.

Anyway 3 years later and my credit rating is excellent. That car finance is still showing on my file but has always shown as satisfied. It has never impacted my credit rating at all.

I too did a lot of investigation before I terminated especially with regards to credit rating but found it to be just myth.
 
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Bungleaio

Ready to race!
Location
Leicester, UK.
The only thing it might jeopardise is if you try and apply for finance again through the same firm as you are handing it back to. They will accept the car back under the voluntary termination but they aren't making as much money out of you as they were planning on doing so it's a black mark against you to them personally. That is just between them and you so won't affect anything on your credit record.
 
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Acky

New member
Location
Scotland
Im in the process of doing this right now and was told by VW finance that it would show up in my credit rating but wouldn't affect the scoring. Im going from An Audi S3 to a VW GTI, so both are with the same finance company and there hasnt been any issues. Was told they would just come and take the S3 away with no short fall to pay.
 
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