I recently bought a renault on finance and it is over four years. The car is on personal finance through Renault. i do like the car but its not really for me. what i would like to know is can i give it back to Renault? Would i have to pay any money? Would it go against my credit rating?
Many thanks
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You can give it back but there will substantial penalties 000's to pay.
Is it HP or PCP?
HP you can hand back after 50% has been paid and walk away - no further penalties.
PCP - the penalty charges will be in your finance agreement
Either way there will be big bucks to pay.
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Your credit rating won't be affected unless you fail to pay what you owe. You may find it is quite expensive to cancel the deal early. The best thing is to go to the supplying dealer and talk through the options with them, and then confirm with Renault Finance.
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I know quite a few people on car allowances who use the 50% hand back clause on HP to get into a better car for less per month. It is quite legitimate and perfectly legal.
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My finance aggrement says HIRE PURCHASE. I got the car for £4695 and i have paid 3 months of installments @ £115 p/month.
DP - can you go into more detail as i dont understand what you mean
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Get a personal loan, clear the HP and sell it.
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Did think of that but dont think i would get close to what i paid for it
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It's just as FB says. If you have made half the monthly payments, you can hand the car back to the finance company and walk away. But you have to be half way through. Otherwise the personal loan suggestion is probably the best bet.
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With the HP handback at 50% time gone, does mileage, condition, etc come into it or can you just return a high mileage car in poor condition to them and that be the end of it?
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I handed a car back after about 2/3rd the term had gone. It had done 54,000 and was starting to die - Fiesta 1.1 valve stem oil seals/head gasket issues.
Did the paperwork, drove it to the local auction house, left it there, never heard anymore.
With HP there is no guaranteed future value like there is on PCP so condition of car is not assessed once it is handed back.
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I think it might be 50% of the total amount payable but you'd need to check.
I.e 7 grand car, plus 3 grand interest == 10 grand. You can bail out at 5 grand.
As with all finance, 50% of loan period gone does not mean you've paid 50% of the car as the interest is front loaded although your monthly payment stays the same throughout the loan the greater part of the payment is interest and less so to actually repay off the price the car. i.e you pay lots of interest to begin with.
If you dont like the car and want to get out, then the faster you make the descision the less interest you are going to pay.
I'd get a loan, pay off the outstanding and just try to be too hard on yourself for the inevitable loss.
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I would probably advise keeping it. How bad can it be? Just put it down to experience. Alternatively park it on the dodgiest housing estate near you with a sign in the window saying " Chavs are losers "
;-)
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I think i will keep it for the time being. If i was to get a personal loan and pay off the cars finance and the sell it i would lose way to much money. However i am going to request a few things to get fixed on the warranty, if they wont do it then maybe i could kick up a big fuss and give it back!!!
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