tillyd Posted March 3, 2014 Share Posted March 3, 2014 Just wondering as we have a car on finance, the other is fully paid up. Not sure what to do about it as I will need to obviously get rid of it if we move. Quote Link to comment Share on other sites More sharing options...
Guest BrisbaneBevan Posted March 3, 2014 Share Posted March 3, 2014 You have to repay the loan early (selling the car to finance it) and unfortunately perhaps forfeit a early repayment penalty? Hopefully the car hasn't depreciated more than your loan interest has appreciated, otherwise you may have a negative balance. Quote Link to comment Share on other sites More sharing options...
GiveAGirlShoes Posted March 3, 2014 Share Posted March 3, 2014 How long have you had the car? If it's over 50% through its finance period you can hand it back to the finance company. There's a clause in (I believe all) car finance loans that makes this possible. My OH has done it once, nearly twice! Of course the finance people do their own "checks" and charge for dents and scratches, and there's paperwork and an admin fee but could be worth a look???? Quote Link to comment Share on other sites More sharing options...
GiveAGirlShoes Posted March 3, 2014 Share Posted March 3, 2014 How long have you had the car? If it's over 50% through its finance period you can hand it back to the finance company. There's a clause in (I believe all) car finance loans that makes this possible. My OH has done it once, nearly twice! Of course the finance people do their own "checks" and charge for dents and scratches, and there's paperwork and an admin fee but could be worth a look???? Grrrrr just realised which direction you're traveling in so apologies if this isn't so in Aus xx Quote Link to comment Share on other sites More sharing options...
Guest Posted March 3, 2014 Share Posted March 3, 2014 (edited) You have to repay the loan early (selling the car to finance it) and unfortunately perhaps forfeit a early repayment penalty? Hopefully the car hasn't depreciated more than your loan interest has appreciated, otherwise you may have a negative balance. Depending on the contract though you may need permission to sell it. We got around it by paying the loan off first then selling. However, also depending on the exact nature of the finance contract you may be able to hand it back to the finance company - whether you'd want to do that depends on how much you owe/how much it's worth. Edited March 3, 2014 by Lady Rainicorn Quote Link to comment Share on other sites More sharing options...
tillyd Posted March 4, 2014 Author Share Posted March 4, 2014 Thank you. We have only had it 6 months. I will check out the contract. I guess we will loose money on it but not a lot I can do about that. Quote Link to comment Share on other sites More sharing options...
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