finance agreement

[enidallac]

I purchased a car on a 5 year finace agreement and was wondering can i end the agreement early or trade the car in for another after about 3/4 years.
At the end of the 5 years i will own the car outright but i understand that sometimes you can make a final payment if cutting an agreement short or trade a car in for another one. is this correct?

[Oneeyedvic]

You need to find out if you have a loan agreement or Hire purchase agreeemnt. - This wil lbe clearly stated on the top of the documents.

If you report back whihc one it is, I will go further

[cardiacbleed]

well, i am assuming the agreement you took out was a Hire Purchase agreement rather than a lease... a hire purchase agreement can be settled early, you merely ring the finance company for a settlement figure and they will tell you how much is outstanding. if you paid a reasonable deposit and the interest rate was sensible and the model of vehicle has not suddenly taken a nose dive in resale value or the condition of the vehicle doesn't effected the resale value, then you should have enough from the sale proceeds to settle the finance and perhaps some equity to go towards your next purchase.. REMEMBER though you do not own the car until the finance company have been paid in full, be very careful that you do not sell the car without notifying the finance company, it will be on the HPI register and you would be commiting a crime if you sold it and did not pay them, he who does not have titile, can not pass title..