Anyone know much about car finance?

[baby_mama87]

Thought I might ask on here just in case anyone has any info. I have a car on loan through a local garage over 5 years, I only drive automatics and oh is pestering me to take my Manual test and car share to try cut out outgoing as my car currently costs me about £290 a month (payments and insurance) so question im asking is are you able to get out of a car contract without any penalties half way through the term so after 2 1/2 years? Or would I still have to pay so much back?

Xxx

 

[suzib76]

It drpends on the type of finance you have, are you able to check your agreement?

 

[lindseymw]

With ours, once we have paid over half of the total finance (loan + interest) we can hand the car back & get out of the finance. However, I have no idea whether this would affect credit rating. Ours is with VW.

I think it would depend on the agreement.

 

[dgirllamius]

With ours, once we have paid over half of the total finance (loan + interest) we can hand the car back & get out of the finance. However, I have no idea whether this would affect credit rating. Ours is with VW.

I think it would depend on the agreement.

I looked into this with my car, it's called a voluntary surrender. It does affect your credit rating. I'm not sure how bad but it's never worth doing.

 

[jenfirstbaby]

I'm pretty sure you can't get out of it without paying off the balance you could phone up for a settlement figure, it would be less in the long run as you wouldn't be paying interest if you paid it all off now.

I'm not positive but almost sure. Like I have mine with Arnold Clark,. I've got 2 years left of paying it off. If i went in now to get a new car , the balance would be added on to the price of the new car xx

 

[sophxx]

With ours, once we have paid over half of the total finance (loan + interest) we can hand the car back & get out of the finance. However, I have no idea whether this would affect credit rating. Ours is with VW.

I think it would depend on the agreement.

I looked into this with my car, it's called a voluntary surrender. It does affect your credit rating. I'm not sure how bad but it's never worth doing.

In tge uk with black horse or BMW it doesn't affect your credit rating at all. X

 

[baby_mama87]

Thanks everyone! I've had a look into it and you can hand back after half the term so will be next nov for me. What I've seen it doesn't affect your credit rating but I best check into it properly first!

Xxx

 

[dgirllamius]

With ours, once we have paid over half of the total finance (loan + interest) we can hand the car back & get out of the finance. However, I have no idea whether this would affect credit rating. Ours is with VW.

I think it would depend on the agreement.

I looked into this with my car, it's called a voluntary surrender. It does affect your credit rating. I'm not sure how bad but it's never worth doing.

In tge uk with black horse or BMW it doesn't affect your credit rating at all. X

mines with black horse through Mercedes and I called them and they said it would affect my rating. they probably said that to stop me doing it