Can't remember the precise details but this happened to my wife a few years ago. The situation was that the outstanding loan was more than the residual (or at least part exchange) value of the car. The dealer told us of an option under the Consumer Credit Act (IIRC) whereby you can return the car to the finance company provided it is still in good condition. As I say, I cannot remember the exact details, but I think if you have paid more than half of the loan satisfactorily, then this is a perfectly legitimate option. The details will be contained in the small print of the car loan. I checked this out with a pal who used to work in the CAB, and it is a perfectly legal thing to do. It's just not publicised by the dealers and the car loan companies, for obvious reasons. I suggest you check your small print and give CAB a ring to confirm.