Car finance

[Kathyan]

We have a car on finance and have been paying for the last 2� years. I can't find the agreement for the finance but I have been told that if we have paid over half we can hand the car back and owe nothing. Is this correct?

[Oneeyedvic]

If it is a Hire Purchase agreement then yes this is true so long as you have taken 'reaasonable' care (whatever that is) - the trouble will be is if the car is not in good condition, high mileage etc.

If it is a Loan Agreement (usually Black Horse) then no, you cannot use the halves rule.

[Kathyan]

The finance is with Royal Bank of Scotland and we went through a dealer to buy the car. I've done around 12000 miles in the 2� years. I suspect (with my luck at the moment) that it will be a loan arrangement?

[Oneeyedvic]

Don't think that RBS do Hire purchase though I may be mistaken.

If you call RBS, they will send you through a copy of the agreement. http://www.rbs.co.uk/Personal_Finances/Get_in_ touch/default.htm