Car Finance

Frequently asked questions: Car Finance

Can I give my car back to the finance company?

You may be allowed to sell the car to pay off what you owe, but you will need to get permission from the finance company, who are the owners of the car, to do this. … This allows you to end your contract and give back the car, but you will still have to pay half the PCP price.
Can you have more than one car on finance?

As long as your credit history is in good shape and you can prove your income (if requested) to show that you can afford both cars then you can finance2 or even 3 cars at the same time.

Can I cancel a car finance agreement?

Personal contract purchase (PCP) and hire purchase (HP) are two of the most popular forms of consumer car finance, and it’s possible to cancel contracts early. You must have already repaid 50% of the balance due, which includes interest and any other charges. If you have, you can cancel the contract and return the car.

Does paying off a loan early hurt credit?

Even if you pay off the balance, the account stays open. … And while paying off an instalment loan early won’t hurt your credit, keeping it open for the loan’s full term and making all the payments on time is actually viewed positively by the scoring models and can help your credit score.

Can u return a car back to the dealership?

In most situations, the dealer has no legal obligation to take the car back if you signed the sales contract. But, you may be able to get whatever reasons for your car buyer’s remorse resolved and possibly even return the car. … This will likely require multiple visits to the dealer’s service department.

What happens if I sell a car with outstanding finance?

What happens if I sell a car with outstanding finance? … It belongs to the finance company, and they have the power to seize it if payments cease to be made on it. Before selling a hire purchase vehicle, you must first advise the finance company and request the settlement figure required to repay the loan in full.

Can I sell my car with outstanding finance?

It is illegal to knowingly sell someone a car with outstanding finance without informing them of the situation.

If you are selling a car with finance still outstanding there are two things you must do before you can legally sell it:

Inform the finance company and ask them for the “settlement figure” they’ll need from you to pay off your loan in full.
Pay off the settlement figure, plus any early repayment fee and administration fee the lender might charge

Can I return a financed car within 30 days?

Not only can you not return a financed car within 30 days, you can’t return it after 1 day. Some dealers will make exceptions to help you out if it’s been a couple of days

Will a car dealer settle my finance?

The answer is yes, but it’s not as simple as that. Indeed, because you still have outstanding finance, the dealer will ask how much you still have to pay. … From there, the dealer will give you their offer for your existing vehicle, and work out the difference between their offer and your settlement.

Can I give my car back to the finance company?

You may be allowed to sell the car to pay off what you owe, but you will need to get permission from the finance company, who are the owners of the car, to do this. … This allows you to end your contract and give back the car, but you will still have to pay half the PCP price.

Can I part exchange a car on finance?

It is entirely possible that you can part exchange your car for a cheaper one. If the car you are part exchanging is worth more than the one you are buying, and the finance is fully paid off, you are often able to use your outgoing car as full payment for the new one and we’ll give you any difference in cash.


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    In the 12 months to March, 86.5 percent of new private cars were
    bought by consumers using finance supplied by members of the
    Finance and Leasing Association (FLA), up from 82.7 percent in the same period in 2016

    Using the average UK salary of £26,000 per year,
    this gives you about £6,500 to spend on a new car.

    In September 2018, over 240,000 cars
    were purchased through finance in the UK.