Paying off Car Finance

[katiet]

Hi,

I was wondering if anyone could help me, I bought a renault clio back in Jan/Feb this year and i am looking to get rid of it as i no longer need it. I bought the car of finance for �5995. Can i give the car back to the finance company to clear my finance off? My friend did this with her peogeot obv she got no money back or the car but it did clear off her finance! What are my options? Help!

[steffomini]

You could ask them what to do,but be prepared to pay a settlement because if you took out the full �6000 on finance you wouldn't have even paid the interest yet,plus the market value of the car is not �6000 that's a retail price so the true value of the car could be nearer �4500.Are you not intending to buy another car then?

[katiet]

No im going travelling so i want to get rid of any outstanding debt i have before i go!

Do you think i would get more if i sell it privately then?

[steffomini]

You can't really sell privately as if the potential buyer does a HPI check it will come out that it has outstanding finance

[CarBob]

you can give the car back to the finance company when you reach half way through your repayments,

as long as the vehicle is still in reasonable condition.

Although you can contact some finance companies who will let you sell the vehicle and pay the money back afterwards. Best thing to do is talk to your finance company