financial agreements

[matthay]

I am tied into a 3.5 yr finance agreement i.e

1. give it back and walk away after 3 yrs

2. give it back and use as deposite

3. keep and re-finance the remainder

However I recently got promoted at work and received a company car. I have six months left on the agreement - to give it back

Do you think the finance company would consider taking my car now rather than me paying the remaining six month monthly fees. Logically they would get six months greater value out of it for re-sale?

Does any know the best approach for this - do I pleed poverty?

[tubeway]

If the settlement figure is less than the value of the car then you can settle at any time - you need to contact the finance company and find out how much it will cost to settle your finance. Then find out how much you can get for your car.

It is likely that the car will be worth less than the settlement in which case you can pay the difference and then walk away.

[DancingDoris]

If it is a standard finance agreement then there will be a clause in the contract stating you may hand the vehicle back to the finance company without any further penalty if you have paid more than 1/2 the amount originally financed. It's called a Voluntary Termination. Most finance houses ask that the vehicle is taxed and roadworthy. Give them a ring and ask about this option! It's worth it if you definately have no further use for the vehicle. Also you could sell the vehicle privately and use that money to pay the finance off. It is frowned upon within the industry but it is NOT illegal as long as you pay the finance/ settlement figure off completely with it!

[tubeway]

The problem with the above answer is that matthay has taken out a PCP (options type agreement) and as such while the voluntary termination will work - as there is a large settlement at the end of the contract - the plan is set up to ensure that the half amount will only be paid close to the end of the contract and so not be an option.
I think you will find that most dealerships do not frown on people selling their cars privately and could be the only option - but the finance must be settled with the proceeds of the sale - it can not be passed on to the new owner and you are responsible for doing this. (If you sell to the trade then they should settle your finance).