Lower purchase
I wonder if you can help me. My partner bought a brand new Lexus RX400 from a Lexus dealer in 2006. She is currently experiencing cash problems and I wondered if it is possible for her to hand the car back to Lexus and walk away? She has been paying £600 a month with a £10,000 deposit. Could you help and advise of our options?
Asked on 12 June 2010 by GJ, via email

As long as it's an HP agreement and not a PCP, once you pass the point of 50% you can hand the car back with nothing more to pay as long as it isn't damaged. But the sums are £10,000 + £7,200 a year for at least 3 years (£31,600, maybe more), which means she can't be far from paying it all off. An 06 basic 400h still trade books at £18,775, so I think she has more equity in the car than 50% and it would be foolish to throw that away.
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