Getting rid of my car

[MrHandyman]

Hi Folks

 

Apologies if this is in the wrong place.

 

I currently have a car which is worth £2400, with outstanding finance of £3900. It is on a personal loan.

 

Is there any way I can get rid of this car without paying the difference, i.e. hand it back to the finance company?

 

Thanks in advance

Mr H

Edited July 17, 2010 by MrHandyman

[sailor sam]

If it's a personal loan then the outstanding finance is what is left on the loan, not the car. If you sell the car for amount 'A' which dosn't settle the outstanding finance 'B' then you would still be liable for the difference between A and B. Handing back the car to the finance company would not be apparopiate as they do not own the car.... you do. You bought it with the money with the money they loaned you so you owe them the money, not the car. If however it was on hire purchase, then the finance company do own the car untill you have paid off an agreed amount.

 

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The advice I offer will be based on the information given by the person needing it. All my advice is based on my experiences and knowledge gained in working in the motor and passenger transport industries in various capacities. Although my advice will always be sincere, it should be used as guidence only.

 

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[chesham]

Check your terms and conditions if it is HP under "termination rights" and it will tell you what your options are should you hand the car back earlier than the agreed settlement date.

[buzby]

If you are simply wishing to dispose of it, a private sale is the wat to go. You stay in control and it remains your perogative to agree a price, and obviously the better the car is taken care of or its specification, the greater amount you will recieve for it. You can then use the finds to repay the loan. YOu can possible get the amount owed to the PF company reduced by asking for a settlement figure, this might shave some of the interest off.