Handing car back on HP

[AS_BO]

This is one for the finance and lease gurus on here. The situation is I bought my RS Twingo in November last year with more then enough money to pay for it. Since then personal circumstances have changed and I need to get a house so it's no longer viable for me to keep the car. Where do I stand with returning the vehicle to the finance company? Anyone had to do this?

 

[Addicted]

For a start what type of finance was it? PCP, Lease or something else?

Lease iirc you have to pay the full balance regardless, PCP you sell the car or hand it back I think.

@Sir_Dave is best equipped to help!

 

[Paprika123]

Get a settlement figure to start with.

 

[Daniel]

Have you rang the finance company?

 

[Sir_Dave]

For a start what type of finance was it? PCP, Lease or something else?

As above really, can you confirm EXACTLY what type of finance agreement you have before we advise.

If it is a HP, it should say the "half way point" on the finance agreement you signed, at that point you can hand it back.

You wont be there yet though, so you basically need to sell the car & clear the finance id imagine.

 

[AS_BO]

As above really, can you confirm EXACTLY what type of finance agreement you have before we advise.

If it is a HP, it should say the "half way point" on the finance agreement you signed, at that point you can hand it back.

You wont be there yet though, so you basically need to sell the car & clear the finance id imagine.

Of course chap, should've included it in OP. I've owned the car for 9 months on HP over 5 years. Settlement as of yesterday is £8155. Do you need anymore info to advise?

 

[Daniel]

Of course chap, should've included it in OP. I've owned the car for 9 months on HP over 5 years. Settlement as of yesterday is £8155. Do you need anymore info to advise?

What are similar cars selling for on autotrader?

 

[AS_BO]

The values are all over the place to be fair. It's a Silverstone GP on a 61 with just under 12000 on the clock. It's pretty much immaculate short of me correcting and refining the paint.

 

[Daniel]

Roughly?

Come on, help me to help you...

 

[AS_BO]

Honestly Dan I saw one go from a dealers with less miles for £7500. Fook.

 

[Daniel]

Ok so lets work on that...

You aren't far enough in to the deal to hand it back (like dave mentioned above) so you have (imo) two options....

1) Take it a couple of Renault main dealers and ask them to buy it off you. They will offer you for arguments sake, £6000. You then get them to pay £6000 to the finance company and you will have to make up the £2,155 shortfall. (0% credit card?)

2) Advertise it privately for £8500. When the new owner buys it, get him to pay £8,155 to the finance company and you the £345.


Does that make sense?

 

[AS_BO]

Yes buddy - perfect sense. Probably the latter I would imagine as my recent change in circumstances dictate that the credit card is a no go. Where do think I should advertise for the best response?

 

[Daniel]

Autotrader and Pistonheads.

In the advert, make sure you put ''The car is currently on finance and will be settled upon sale'' otherwise people may HPI it, see the finance and run off worried that you haven't mentioned it.

It's very common place nowadays though and lots of people sell their car this way.

 

[Jeff456]

Sounds silly and I'm sure people know but if someone settles finance for you make sure the finance company confirm it writing it is settled.. Been a spate of a person going round country and the moment buying mercs on finance settling finance on a credit card to later cancel the transaction once they have received car!

 

[Paprika123]

Typical buying cars on finance scare tactics.

RCI won't take a card payment from anyone apart from the account holder. The only payment they accept from someone not named on the account is via chaps.

 

[Daniel]

Typical buying cars on finance scare tactics.

From who?