Ending car finance at the half way point
Discussion
A friend of mine bought a Mondeo from CarCraft (I know) just over 2 years ago. The car was up for about 9k and the finance agreement was 13.5k.
He is coming up to the half way point and was going to hand the car back to end it.
He has now read his paperwork and noticed that it says that he can only hand the car back if he stumps up 4.5k too (as in hand back the car AND pay 4.5k)
Does this sound right? I've not seen the paperwork myself so not sure if he has misread something.
He was also mis-sold the PPI too as he told them he was self employed and they said he would still be covered.
He is coming up to the half way point and was going to hand the car back to end it.
He has now read his paperwork and noticed that it says that he can only hand the car back if he stumps up 4.5k too (as in hand back the car AND pay 4.5k)
Does this sound right? I've not seen the paperwork myself so not sure if he has misread something.
He was also mis-sold the PPI too as he told them he was self employed and they said he would still be covered.
He can probably get the PPI written off if it's been mis-sold but the 4.5k sounds about right as in the words of the contract (I'm guessing here) it is probably seen as an early termination of finance agreement clause. The lesson here? Don't sing anything until you have read through the paperwork so much you can recite it backwards
farrendahl said:
He can probably get the PPI written off if it's been mis-sold but the 4.5k sounds about right as in the words of the contract (I'm guessing here) it is probably seen as an early termination of finance agreement clause. The lesson here? Don't sing anything until you have read through the paperwork so much you can recite it backwards
And definitely don't sing it out of tune. 
Depends on the agreement. Read it!
Tyre_Tread said:
farrendahl said:
He can probably get the PPI written off if it's been mis-sold but the 4.5k sounds about right as in the words of the contract (I'm guessing here) it is probably seen as an early termination of finance agreement clause. The lesson here? Don't sing anything until you have read through the paperwork so much you can recite it backwards
And definitely don't sing it out of tune. Depends on the agreement. Read it!
I was taught by a very good lawyer that all good lawyers start every answer with 'It depends'
So, it depends.
The type of contract is important and so is how it was sold.
It is nigh on impossible to say without seeing it whether it is a legally valid and enforceable contract.
If in doubt he should seek some legal advice from a competent and qualified person.
So, it depends.
The type of contract is important and so is how it was sold.
It is nigh on impossible to say without seeing it whether it is a legally valid and enforceable contract.
If in doubt he should seek some legal advice from a competent and qualified person.
Doesnt sound right to me. I thought all car finance agreements now had to be "regulated agreements"?
If half the money under the agreement has been paid you should be entitled to VT the car back to the finance company without any further charges.
Any car finance experts around to confirm?
If half the money under the agreement has been paid you should be entitled to VT the car back to the finance company without any further charges.
Any car finance experts around to confirm?
Standard HP agreements used to (its been a while) have standard hand back at 50% of the total repayment being paid but so many car finance companies got shafted with the drop in car values that they may use a modified agreement which may, or may not, be enforceable.
If signed by a 'Consumer' they are regulated under the Consumer Credit Act but that doesn't mean that the terms cannot be varied.
If signed by a 'Consumer' they are regulated under the Consumer Credit Act but that doesn't mean that the terms cannot be varied.
Edited by Tyre_Tread on Tuesday 30th March 20:33
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