Handing back a car halfway through finance.

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Thu 7 Aug 2008 19:58
Handing back a car halfway through finance. - jimbano
Hi, i'm getting ready to return our car to the finance company as we're just coming up to 2 yrs, which is halfway. Can anybody tell me, do i require to have full MoT and tax on the car?. the current mot expires during October. other than that the car is mint.

Edited by Pugugly on 07/08/2008 at 20:15

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Thu 7 Aug 2008 20:05
Handing back a car halfway through finance. - Wee Willie Winkie
Regarding your right to voluntarily terminate, check your finance agreement. Your obligation is to pay half of the total amount payable under the agreement. You will be expected to MoT the car, but not a full 12 month ticket. The same with RFL.

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Thu 7 Aug 2008 22:08
Handing back a car halfway through finance. - oldnotbold
No need to re-MoT the car, if all else in order, so long as the MoT is valid on the day of return, surely?
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Fri 8 Aug 2008 10:00
Handing back a car halfway through finance. - spikeyhead {p}
If there's not much MOT left on it, would be worth getting a new one and take photos from every angle showing the condition of the car inside and out.
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Wed 17 Sep 2008 20:52
Handing back a car halfway through finance. - jimbano
Hi,

Just an update on this post.. more advice needed.

Just off the phone to finance company to tell them that i need to terminate the agreement and that i wish to pay the sum that will take me up to the halfway point as stated on the hp agreement.
First she told me that my figure was incorrect as the firsts months payment was to gap insurance, and therefore did not count against the car. I explained that the agreement that they provided had a halfway point figure on it and also it was noted on the agreement that gap insurance was included so i did not see why i should be paying any money than that stated on the agreement. She refused to budge, so i refused to pay anything.. at the moment.
Secondly she told me that if THEY do not pick up the car BEFORE my next due payment, then i will be liable for another months payment. Again i stated that if i pay the halfway figure, then i am entitled to hand the car back. She refused to budge, so i refused to pay.. at the moment.
With reference to the earlier posts, she told me that the car does not need an mot, but the RAC will carry out an inspection to determine any defects, that i would be liable for, but i explained fair wear and tear is allowed.( The car is mint,valeted and machined polished)

Any advice on this topic will be much appreciated, as i don't want to pay ,ore than i should.
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Fri 19 Sep 2008 22:41
Handing back a car halfway through finance. - harryjpotter
Generally if there is an existing amount left to pay under your agreement, the finance company will pass it to there collections agent to deal with it.

You will however need to put this in writing to them, stating that you wish to voluntarily return the car and invoke the termination clause in your agreement.

As you have already stated the agent will arrange for a company such as the RAC to inspect the vehicle, and in due course advise you of any defect that will have an adverse effect on the vehicle reserve price at auction.

You will of course be given opportunity to rectify all or any of the defects to keep the reserve price as high as possible. You dont have any obligation to do so.

Once the car has been auctioned, the collection agent will contact you to advise of any shortfall in the amount received at auction and the remaining finance under your agreement.

They will come to a repayment agreement with you, ensuring that you do not have to pay more each month than you can realistically afford.

This will cease once you have paid the shortfall under the agreement.

Your Finance Agreement will most likely contain a clause that the car should be maintained as per the manufacturers specification and be taxed and have a valid MOT at all times. Any discrepancy to these conditions will ultimately have an adverse affect on the reserve set when the car is sent to auction.
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