Cars on finance
Just wondering if anyone got newish cars on finance, ( Purchased a year ago, before Australia even thought of ).
Has anyone handed cars back, or did you have to pay outstanding interest and balance before you went?
Anyone in this predicament at the moment, would value your advice?
How did the finance company view this ?
Hi Sam, so you have a car in the UK on finance. What sort of loan product is it? Hire purchase? Lease? Novated lease? Loan? Contract hire? The product type can make a big difference and determines if you or the lender owns the car - for example.
The usual arrangement is for you to arrange to sell it. The balance you owe (total payments) is normally "discounted" by reducing "some" of the interest you would have paid over the full term. However, it's likely there would be a substantial "penalty" for repaying early. The sale proceeds pay out the loan. If the car is worth less than you owe, then you will be required to pay the difference.
I'd advise against just giving the car back, as they will likely just send it to auction and you will be responsible for the shortfall.
Hope this helps a bit! Probably best for you to phone the lender direct and ask them.
Hi - We have a hyundai tuscon which we took out on a 5 yr hire purcahse deal. Our agreement allows us to give the car back after 2 1/2 yrs and have nothing to pay, which we are going to do in Oct. Like you we did all this when Oz wasn't even thought of, so maybe you should give your finance co a ring and see what you can arrange? You never know;)
Bext wishes, Lynne
. Our agreement allows us to give the car back after 2 1/2 yrs and have nothing to pay,
thats called termination rights if you are short of your termination rights you can pay the diff thats if you have a hire purchase agg but brcarfull about products gap you can cancel but i dont think you can cancel ppp