Voluntary Termination of car finance-clause missing?

[mama12]

My car finance agreement with Hitachi Capital does not show a Voluntary Termination clause? Can I still hand it back as I have paid more than 50% of my payments-all on time? I have been offered a company car and want to save some money...I am confused as I thought it was a statute law but cannot find it on the agreement?

[R0b]

Re: Voluntary Termination of car finance-clause missing?

It only applies to Hire Purchase type agreements. If it's a fixed sum loan then no you cannot VT as that is a loan like you would get from a bank

[Andy71]

Re: Voluntary Termination of car finance-clause missing?

So if the car's not on HP, does this mean he could sell the car without notifying Hitachi and then pay off the outstanding settlement figure?

[R0b]

Re: Voluntary Termination of car finance-clause missing?

So if the car's not on HP, does this mean he could sell the car without notifying Hitachi and then pay off the outstanding settlement figure?

If the agreement is a fixed sum yes, because the money is used to purchase the car and instead of Hitachi owning it until all payments are made, the debtor owns it from the start.

[Andy71]

Re: Voluntary Termination of car finance-clause missing?

Thanks Rob. I'm in the same boat, my car's on finance with Hitachi and reached 50% of the finance term, I've had the settlement figure and would need to find another £1500 on top of the figure my car is worth to pay off the final settlement agreement by selling my car privately, or my other option is: Trade in my car Part Ex, but I'd still be in negative equity, as the trade price is £1300 less than the value by selling it privately. I'm in a no win situation, whichever way I try to get around it.

[R0b]

Re: Voluntary Termination of car finance-clause missing?

Have you spoke to any dealerships who might be willing to pay out your finance in return for taking out a new finance deal? The £1,500 outstanding would be added onto the new finance package but if you were then to take out a HP type agreement and not a fixed sum loan agreement (this is where you actually have to read the document not just sign on the dotted line when told), could then VT at the 50% stage of the agreement and hand the car back.

That is of course depending on what you can afford to pay monthly but it is an option.