car finance

[tracieburns]

i have car finance over 3 years, but i wish to ditch the finance company, and the car, how can i do this

[NORMANTHEDOG]

Depending on how many months you have left on the payments,you can ask the finnance company to take the car back,check out the small print on your agreement it should tell you there.

[xrayspecs]

Given the rapid depreciation of motor vehicles the finance company will not want the car, regardless of how long you've had it. If you default on the payments they will recover the car to sell at auction. You will still be liable if there is any shortfall between the auction sale price and any outstanding finance. If you sell on the car you are still liable for the payments. The only way you can rid yourself of the debt is to pay the outstanding amount.

It may be possible to sell the car on and enter an agreement with the buyer to give you the diference between the sale price and the outstanding finance. The buyer settles the finance and gives you the difference between that and the sale price. Keep hold of the car until the finance company lets you know the outstanding debt has been cleared. This obviously depends on the sale price being more than the outstanding finance.

[themas]

By car finance do you mean Hire Purchase? If so, you cannot sell the car - it isn't yours to sell. Most HP agreements include provisions about what happens if you want to give up the car. Read your contract closely.

If it is not HP, then what sort of loan is it? Most would simply be a Consumer Credit Act agreement under which there would be nothing to stop you selling the car but you would still be liable to repay the loan (just the same as if you had a loan to buy some furniture or to refit a kitchen etc.)

[xrayspecs]

I bought my car in exactly the way I describe. The finance company had no problem with the deal.

[indebt12000]

ive heard if the car goes through the hands of 4 or 5 private buyers they cant reposses the car but will still want the money from you.as i say i heard this i dont know if this is the case.