Car Finance

[garethEds]

Has anyone here ever given a car back to a finance company thus terminating their contract agreement?

 

Apparently I can do this if I have paid over a certain amount. That's great news.

 

However if you are not carrying through the agreement does anyone know if I would get stung for mileage charges?

 

Any advice or help welcome,

 

GJE

Edited June 15, 2009 by EduTech
Can > Car :)

[K.C.Leblanc]

I think it only applies on Hire Purchase, and you have to half way through the deal. Since you mentioned milage charges I assume you're on PCP or a lease.

 

Honest John Car Buying Advice - Home might have the answer, or you could always phone the finance company and ask.

 

Please tell me you're not this chap.

[garethEds]

No that Clio isn't me. LOL.

 

LUckily for me this isn't about finance - paying for the car isn't a problem. I just hate the damn thing and want to get rid.

 

GJE

[machin05]

There would have been a mileage allowance in your T&C's. It's usually around the 10-12k a year. I think if you've paid over half the amount leased then you can terminate the agreement with no added costs.

 

I did exactly this with my Citroen C2.

 

They send out a 3rd party company (usually an car auction house) to inspect your car and you are liable for covering the cost of any unreasonable wear and tear. Again, check your T&C's for what they regard as unreasonable wear and tear. I had a missing spare key and a scratch down the side of my car which was declared as unreasonable. However, saying that Citroen never charged me for it, and that was over a year ago!

[garethEds]

There would have been a mileage allowance in your T&C's. It's usually around the 10-12k a year. I think if you've paid over half the amount leased then you can terminate the agreement with no added costs.

 

That is what I am hoping for as I have gone slightly over my allowance by 5000 miles. I have paid well over half.

 

I did exactly this with my Citroen C2.

 

Don't blame you (LOL).

 

They send out a 3rd party company (usually an car auction house) to inspect your car and you are liable for covering the cost of any unreasonable wear and tear. Again, check your T&C's for what they regard as unreasonable wear and tear. I had a missing spare key and a scratch down the side of my car which was declared as unreasonable. However, saying that Citroen never charged me for it, and that was over a year ago!

 

I'm extremely fussy about my car and it is immaculate. I have polished out any small key scratches (which I believe are normal wear and tear). I have touched up the edges of the doors where they may have hit a wall when opening. Everything is in order.

 

I've been told that some companies can get awkward with their definition of 'wear and tear'.

 

GJE

[PeterW]

I've been told that some companies can get awkward with their definition of 'wear and tear'.

 

What car is it? If it is a Renault RCI finance are known to be a pain for this, they sometimes send bills for repairs 3 months after you have VT'd the agreement.

Edited June 16, 2009 by PeterW

[garethEds]

What car is it? If it is a Renault RCI finance are known to be a pain for this, they sometimes send bills for repairs 3 months after you have VT'd the agreement.

 

It is a Vauxhall Zafira 1.9CDTi (150) with GMAC Finance

 

Not found anything bad about them on the web. Plenty about Welcome Finance and Car Craft.

 

If they say no then I will just have to keep on with the car until the agreement runs out. I'm not worried about that. Like I said I just hate the car.

 

GJE

[machin05]

Hey, my C2 VTS was mega, just a bit plasticy on the inside!

 

What were you planning on doing once the agreement expired? Is it one of these 'final balloon payment' or 'hand it back' deals?

If so, if you wanted to hand it back, I believe the mileage allowance still applies.

 

Sounds like you've kept it in good trim. Surface scratches are generally ok. The scratch they highlighted on my car was down to the metal and I should have had it repaired as this was beyond reasonable damage. But hey, I got away with it.

 

You planning on getting a new car? If so, what you looking at? I've moved onto a Ford Focus ST170. Love it, it's hot.

[garethEds]

Hey, my C2 VTS was mega, just a bit plasticy on the inside!

 

LOL ;-) The same can be said of my Vauxhall Zaifra

 

What were you planning on doing once the agreement expired? Is it one of these 'final balloon payment' or 'hand it back' deals?

If so, if you wanted to hand it back, I believe the mileage allowance still applies.

 

Yes it is a bubble payment scheme. I am over the mileage, the car isn't worth the bubble so I am looking to terminate the agreement - which according to my contract I can do. I'm sure GMAC will not be happy but it's their rules.

 

Sounds like you've kept it in good trim. Surface scratches are generally ok. The scratch they highlighted on my car was down to the metal and I should have had it repaired as this was beyond reasonable damage. But hey, I got away with it.

 

Yes I have

 

You planning on getting a new car? If so, what you looking at? I've moved onto a Ford Focus ST170. Love it, it's hot.

 

Well I have just purchased one of these:

 

BMW UK | BMW 3 Series | Touring

 

GJE

[machin05]

I'm pretty sure that with a final pay off scheme that you're still susceptible to the mileage allowance stipulated in your agreement.

 

I found this page Learning About GMAC Auto Loans

but I think it's referenceing the American market. However, this states that your allowance is 15,000 miles a year, but, it may be more in America.

 

Either way, you're going to have to pay something extra so you might aswell end it early and save on the monthly payments.

 

Another tip, when you write to them to terminate your contract it's effective from the day you write the letter. Make a note of it, but DON'T cancel your payments, let them do it. If another payment comes out after the date of the letter then they will refund it once the contract has terminated and the car is collected. If their system tries to take a payment and your bank refuses it you get a big cross next to your name!

 

Beemer looks nice. Brand new?

[garethEds]

I'm pretty sure that with a final pay off scheme that you're still susceptible to the mileage allowance stipulated in your agreement.

 

Yes - that is what I was thinking. However I am terminating an agreement - not taking it to the end.

 

I found this page Learning About GMAC Auto Loans

but I think it's referenceing the American market. However, this states that your allowance is 15,000 miles a year, but, it may be more in America.

 

On my contract it says 10K - that seems stupid now

 

Either way, you're going to have to pay something extra so you might aswell end it early and save on the monthly payments.

 

Yes - that is what I thought. But paying £900 for excess mileage is annoying.

 

Another tip, when you write to them to terminate your contract it's effective from the day you write the letter. Make a note of it, but DON'T cancel your payments, let them do it. If another payment comes out after the date of the letter then they will refund it once the contract has terminated and the car is collected. If their system tries to take a payment and your bank refuses it you get a big cross next to your name!

 

That has become apparent from the research I have been doing on Voluntary Termination. It seems a lot of people have cancelled their payments and have then been told they cannot cancel their contracts because they are in arrears. Silly people. Nothing cancelled here until I get told by GMAC that I can do so.

 

Beemer looks nice. Brand new?

 

Unfortunately not - it is a 56 SE. I wanted an M Sport tourer but they were slightly above my range. As it is now the dealership made a mistake with the price on their website and so in all fairness sold it to me at the lower price. I've saved £1600 off the forecourt price. They have also put in a years tax, mats and flaps. They are also delivering and giving me a tank of diesel once it is here.

 

All this and still cheaper than the Zafira.

 

GJE

[machin05]

£900 is a bit of a stinker. I guess you just got to take this one on the chin.

 

I'll never buy brand new again, for reasons made apparent by the likes of this thread.

 

EDIT: Is there any value on carrying on with monthly payments but not driving the car, therefore bringin your overall average mileage down?

 

You may end up spending another £500 on finance payments but your mileage cost might be down to £200?

(I've completely fabricated those figures btw)

Edited June 16, 2009 by machin05

[garethEds]

£900 is a bit of a stinker. I guess you just got to take this one on the chin.

 

I'll never buy brand new again, for reasons made apparent by the likes of this thread.

 

EDIT: Is there any value on carrying on with monthly payments but not driving the car, therefore bringin your overall average mileage down?

 

You may end up spending another £500 on finance payments but your mileage cost might be down to £200?

(I've completely fabricated those figures btw)

 

I agree with your comment about brand new. After seeing the quality of the approved BMW cars in Norwich on the weekend (yes we had a road trip) - I think buying brand new is stupid. I'm getting less materialistic as I used to be.

 

I have gone over my end of contract mileage - which is 32500. I am on 39000. Not good. However in another forum I am being told that they do not charge for mileage because you have terminated the contract. The stinger is GMAC charging 9 pence a mile over. BMW only charge 3 pence a mile.

 

GJE