MEDP 299.XX Hunter College at the City University of New YorkPosts RSS Comments RSS

Settling A Finance Agreement Early

By voluntarily exchanging, you return the car, but you still have everything left to pay. The financial company will sell the car at auction, but if the car is not sold at a high enough price, it will follow you for the difference. You must have the money to pay the number of compensations. Otherwise, you can fund that number, even if you do, and you will end up paying interest and you want to make sure that it is less than just continuing with the original contract. Changing circumstances mean that you must terminate your agreement now, instead of waiting for it to end. What are your options? Thank you for your help with Stuart. I managed to terminate my PCP and get the loan, so they ended up happier with my financing agreement. Good morning. I made a PCP agreement with BMW Finance three days ago, I`m taking the car yesterday.

Unfortunately, I won`t be able to keep the car because of a poor medical problem, which means I can`t drive. Is there any chance that I`ll give the car back and settle down early? What are my options? Some financial companies will allow it on other financial products (such as an HP), but as a general rule, you should try to avoid refinancing your negative equity anyway, so it`s best to try to clarify it before taking out another loan. Good morning, Paul. You should be able to voluntarily terminate the contract and return the car, as you must have repaid more than 50% of the total amount to be paid. It will not affect their credit quality, as it is your legal right (read the related article for more information). Hello Stuart, about to get a deal on a ford fiesta, I get a ford discount because my dad works at Ford. The dealer keeps telling me that people with a Ford discount are better at swapping the car every year and getting a new one. It`s true? Or is it better to return the car after 24 months and launch a new contract? If you decide to return the car, inform the financial company by letter or email and keep a copy. Make it clear that you are giving the car back and ending the agreement. If you don`t, you might see that you are defaulting on your payments, which could have an impact on your creditworthiness.

Hello Stuart, I currently have an Audi S3 on a 4 year PCP contract. My miles a year are 15k miles on the deal, but at 12 months of car ownership my mileage has far exceeded (23k miles) and will continue to be about 23k miles per year for the remaining 36 months. My penalty for excessive mileage is about 7 pence per mile. Would it be better to launch a new agreement on the PCP (paying negative equity) or to wait further and be faced with excessive mileage charges? But if the current value of the car is more than your remaining payments, you could better pay a billing figure to the financial company and then sell the car. Good morning, Darren. You probably won`t be able to refinance it through BMW, so you`ll have to take out a personal loan from your bank.

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