End car finance agreement early

"Jacob Rosse" wrote

This is standard for consumer credit agreements. In fact, it's not half the loan that you need to have paid - it's only half of the *total* cost, including any deposit! (which means less than half the loan - eg if you paid a 50% deposit, you've already paid half the cost at the start)

I once owned a (static) caravan on finance this way. When I decided to give it up after a couple of years, the cheeky b***ers tried to charge me a few grand just to give them the keys & lose the 'van! Fortunately, the next monthly payment put me over the magic half-of-cost (including deposit) so I just sent them the keys in the post, no cheque, and pointed out the relevant term in the T&C. All sorted!

I have done this before and it does not affect your credit rating so long as you have paid half.

In message , Tim writes

Doesnt this only apply if it is 'Hire Purchase' not a personal loan?

"john boyle" wrote

Yes, a personal loan isn't linked to the purchase made from the cash, is it? But I thought the OP was talking about the usual HP agreement :-

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Suggests not a personal loan.

They are expecting the car back as well, so it looks even more like it is not a personal loan - ?

In message , Tim writes

I agree, - it was you who was talking about 'a loan'.

Also you referred to Consumer Credit Agreements in general without making any distinction between HP or a Loan implying the terms were applicable to all Consumer Credit Agreements, which they are not.

I merely wished to make that distinction, which you now acknowledge.