Returning the car
If you’ve already paid half the cost of the car or make up the difference between what you’ve already paid and half of the car’s cost, you have the right to return the car to the finance provider under the Consumer Credit Act 1974. This is called ‘voluntary termination’.
Can you return a financed car back?
Voluntary repossession allows you to return a car you financed without being subject to the full repossession process. This could spare you some credit score damage, though a voluntary repo could still be reported to the credit bureaus.
Can I give my car back on finance if I can’t afford it?
Usually the finance is provided by a company which is separate to the garage or dealership. If you can’t keep up with payments you can hand the car back. You won’t get any of the payments you’ve made back, but if you’ve paid more than half of the agreement you’ll usually have nothing else to pay.
How can I get out of car finance UK?
- Speak to the finance company.
- Pay the settlement figure and sell the car.
- Part-exchange the car for a cheaper new one.
- Use Voluntary Termination (VT) to end the agreement.
- Use Voluntary Surrender to return the car.
- Speak to the finance company.
- Pay the settlement figure and sell the car.
Can you return a financed car UK? – Related Questions
What happens if you return a financed car?
If you return the car to the lender, the lender will likely sell it. It will apply the proceeds of the sale to your car loan balance, after reimbursing itself for the costs of sale and certain fees.
What happens if you want to get rid of a car on finance?
A voluntary termination of a car finance agreement can indeed appear on your credit file. However, it’s not likely to have any impact on your credit score, or your ability to get finance in the future. If you can’t keep up with your monthly car finance repayments, you might be tempted to simply stop paying.
How can I get out of a car with negative equity?
Ask for a voluntary termination
If you’re wondering how to get out of negative equity car finance, one way is to simply return your vehicle; if you’ve paid at least half of your total finance package, you might be able to hand the vehicle back.
How do I get out of an expensive car payment?
There are several ways to get out of a car loan. You could pay it off, refinance it, sell the car to an individual or dealership or trade in the car for a less expensive vehicle.
Can you swap finance from one car to another?
This means swapping finance from one car to another isn’t possible, nor can you take your current car off the finance arrangement and replace it with another. Instead, you’ll need to end the contract you have on your current car and take out another finance agreement on the new one.
How soon can you trade in a financed car?
How soon can you trade in a financed car? You can trade in a financed car any time, but you may want to wait a year or more — especially if you bought a new car. Cars depreciate over time.
Can I cancel a finance agreement?
You have the right to cancel a credit agreement if it’s covered by the Consumer Credit Act 1974. You’re allowed to cancel within 14 days – this is often called a ‘cooling off’ period. If it’s longer than 14 days since you signed the credit agreement, find out how to pay off a credit agreement early.
Can I change my car after 6 months?
Legally, you can trade in your car under loan at any time. The question here isn’t so much about if you should trade in your car after a year or 2, but rather how much money you stand to lose or gain at any point in the loan term.
Will a dealership buy my car if I still owe?
What happens if I still owe money on my trade in car? It’s important that you know the pay-off amount – how much you still owe – and the trade value of the car – how much the dealer is willing to offer you. A dealer will then pay off your old loan and give you a credit for the value of your trade vehicle.
Does selling a financed car hurt your credit?
Sell the vehicle.
If your car is worth as much as or close to the balance on your account, selling it could enable you to pay off the loan without harming your credit.
Can you return a financed car back to the dealer after a year?
The hard truth is that most auto dealerships aren’t going to let you return a vehicle that you’re financing. Some dealers have a return policy – sometimes around a seven-day guarantee when you’re financing a car sight-unseen without a test drive – but most don’t offer one.