Car Finance - Handing the car back - credit rating

[sja]

I have a car on HP. Have paid 3yrs out a 5yr deal. Can I hand it back to company? Will credit rating be affected? cheers

[Vee]

It is not halfway in time, but half of the total agreement.
Was the agreement <£25k and regulated ?
Did you pay a deposit ?
How much have you paid back/is there a balloon ?

Check the terms and conditions for a Voluntary Termination clause.

[sja]

Turns out it wasn't on hp but a personal loan.. Cheers

[Welshbeef]

Really interesting point say it was a PCP what happens then? We all know if its less than £25k initial credit and your >50% through the deal then you can hand the car back.

HOWEVER Im strongly of the view it would harm your credit rating else youd take out 3/4 year PCP deals and always hand back early.

[bullitinhead]

"HOWEVER Im strongly of the view it would harm your credit rating else youd take out 3/4 year PCP deals and always hand back early."



I would agree with you it would seem that is the logical way it would work, however I do exactly that(throw cars back at the mid point,and start again), and I have never been denide credit for a new car even with the same company, so I think it debunks that theory.

bullit

[Welshbeef]

bullitinhead said:

"HOWEVER Im strongly of the view it would harm your credit rating else youd take out 3/4 year PCP deals and always hand back early."



I would agree with you it would seem that is the logical way it would work, however I do exactly that(throw cars back at the mid point,and start again), and I have never been denide credit for a new car even with the same company, so I think it debunks that theory.

bullit

You checked your actual credit score though?