Selling Back a Car on HP

[milly143]

Exactly 2 years ago I bought a car on finance from a VW dealer for a little over �8,000.00. I pay around �140 a month for it. Due to other circumstances, it is now becoming a strech to afford the car and the running costs of it every month. With 2 years left on agreement do I have any options in regards to selling the car back to the dealer half way through or do I have to keep it until the end? I realise that I will end up losing money if I do 'sell' it back to them but I just am looking in to options at this time and would like to know if they would take it back off of me. I don't want to extend the finance agreement at all.

[CheekyChops]

If it was on HP and not a personal loan, then as long as you have paid half of the agreement, you can do what is called a voluntary termination.

You basically hand the car back and pay no more. It should be detailed in your HP agreement somewhere.

[Oneeyedvic]

Hire Purchase does still exist - docspock is talking out of his arse.

Cheeky chops is correct - your original documents will tell you about the 'halves' rule. Essentially, you must have paid at least half of the amount of credit (this includes deposits etc). Your agreement will have the actual amounts written on.

[R1Geezer]

You can also get a settlment figure and sell it for at least that and repay the finance. You have to be up front with the buyer and arrange that the money goes to repay the lender. Depending on value and what is out standing, this may be an option still worth it if you have to add a little yourself to repay the debt but cars are not selling fast at the moment. Lenders are very reluctant to take back cars even under the halves rule and will use every trick in the book to get out of it. If it is not an actual HP agreement then this is not even an option. best to consult with the lender.