Morning guys and gals...

I was under the impression that if you had paid half or more of your finance agreement you could hand a car back to the dealer... My Dad is looking to do this as hes getting old and can no longer see well enough to drive, as well as not being able to comfortably afford it any longer. Hes lost the finance agreement in a recent move...Hes been given 3 other options for offloading the car, none of which are simply handing it back...

The car was taken out in Nov 2005 over a 4 year period.

Does anyone know anything about this? All advice gratefully received!

Thanks... MrsA

Unless it says otherwise in the agreement, if you hand the car back, the finance company will auction it (probably for its trade value), take the proceeds of the amount owed, add something on for "expenses", then demand that the balance is paid in full.

There are many different types of car finance available. Most have clauses that work in favour of the finance company if there's any deviation from keeping up the payments.

MrsA

Contact the finance company and obtain a copy of the agreement, read it and keep your eyes peeled for a bit that reads something along these lines.

"Termination - Your rights You have the right to terminate this agreement. To do this you must inform us in writing. In return, we are entitled to half of the total amount payable under the agreement and return of the goods in a reasonable condition"

Now the tricky bit, indicated by Maxsteam, is the reasonable condition bit. Most half decent finance companies (certainly ones that I deal with) accept this and get on with it. Other, less desirable outfits may try to get you to pay the outstanding balance in full.

You should have no problem if the car is worth the same, if not more, than the outstanding balance.

As an after thought, can you step in and sell the car for your Dad for more than the amount on the agreement? Are you changing your car? You could trade it in against your new one for example...? Just a thought...

JJ