I need some guidance with regards to handing back a car. I purchased my vehicle in November last year under a car lease scheme with a Balloon payment after 4 years. However I have been seriously ill and will no longer be able to go back to the same job as previous. I have contacted the garage where I purchased the car but as usual they are only interested in you when you buy a car not when you need some guidance about handing one back.

I realise that I may have to pay some sort of premium but could do with some help as to my next step. Who would I contact and can I legally hand the car back if |I am willing to pay the balloon payment. I am self employed and obviously not in a position to continue to pay the car so I would like some help ASAP.

Many thanks

Stomper

If you can pay up to half of the total amount payable on the agreement, you should be able to hand the car back to the finance company. This is called a Voluntary Termination. If your car is in good condition then this should be no problem.

This aside (unless you have Protected Payment Insurance) you could be stuck with it unless you obtain permission from the Finance company to sell the car and repay the loan with the capital raised from the sale.

JJ

Thanks for the reply - the car is in excellent condition - and is a top of the range model. From what you say can i take tit that if the car was 20k and i have paid say 5k then i would have to find 5k or would it be half of the balance.

Thanks again for your help