Car finance Voluntary termination?
My car is on a hire purchase agreement and I can Voluntarily terminate the agreement after half of the payments are made, I am half way through and my finance company has told me that I can VT if I wanted. I want to know if this will affect my credit rating and will I be able to get another car on finance because I was looking to get another car on finance in the next few weeks? Anyone who has experienced this before?
Yes you can terminate it. You will remain responsible for any outstanding money and the regular payments until the car has been sold (usually at a low auction price) and any money not covered by the funds raised by the sale after the finance companies charges. If you fail to keep up with the payments due you will get a poor credit rating and may well not be able to get any form of loan for a while.