Can you return a financed car within a certain period?

My 19 year old brother got himself an 04 1.2 Fiesta on finance from a Pegeot garage of all places. It has no electric windows, no air con, no bloody mats, has a few scratches, no alloys, and the plastic crap that come with it are scratched. He paid a £600 deposit, and then I think somewhere in the region of £85 over 3 or was it 4 years??

Price on the car was 4k. It is the bog standard edition. I just want to know if there is a get out clause, and what the situation is with the deposit, so I can convince the little shite to take it back.

It is also missing the red master key you need for fords. It also had hardly any petrol in.

Only good thing.......23k on the clock.
I think it would depend if the car was purchased using a loan or a Hire Purchase agreement. If a loan, no chance. If on H.P then I believe you can do a Voluntary Termination if you have paid a certain amount.

I believe my brother had to have paid 50% before he could hand back his car after he ran in to some money trouble. Don't know how this would affect his credit rating though ?
I doubt it. I assume he has used the car, thereby rendering it less valuable than when he bought it. Your comments about the state of the car will be irrelevant unlees the garage damaged it between when he accepted the deal and when he picked it up. It is a used car and, short of any expressed or implied guarantees, it was his job to be satisfied with the deal or not at the time. There may be the possibility of getting out of the finance arrangement by paying the full value of the car but he will still own the car.
I done the same thing through arnold clark on H.P.

After paying half the amount you can hand the car back when its hire purchase but you have to keep paying it until the half way point, dependant on which bank is the underwriter you may be able to do a balloon payment but i know bank of scotland won't amuse you until you have paid the monthly instalments till half way; i got it over 36 months for example and had keep paying my monthly until the 18 month point.

hope this helps and this was only last year so i doubt the law has changed on it, good luck.
fatboy69 said:
I think it would depend if the car was purchased using a loan or a Hire Purchase agreement. If a loan, no chance. If on H.P then I believe you can do a Voluntary Termination if you have paid a certain amount.

I believe my brother had to have paid 50% before he could hand back his car after he ran in to some money trouble. Don't know how this would affect his credit rating though ?
Once you have paid 50% you can return the car, it doesn't effect your credit rating

I also returned a car after I had paid 50% on HP...and again, Arnold Clark!!!

A theme here perhaps?

I did it because car prices fell, my car was worth £3k...I owed I just gave it back and started again!

Buying a used car is always a tricky proposition. It doesn't matter if it's last year's model or an old banger with plenty of miles on the clock; it's always a bit of a gamble. That makes it especially important to know your rights when you buy a used vehicle.

Buying From a Dealer
Buying a used car from a dealer is still probably the safest way to go, but that doesn't mean all dealers are 100% honest. What you need is someone established, with a good reputation. Ask your friends, or look for one with a trade association sign.

The Retail Motor Industry Federation or the Scottish Motor Trade Association can give you a list of their members. Does the dealer have his cars inspected? If so, by whom? Is it an independent engineer? Or is it by a motoring organisation? Don't be afraid ask for the report. It won't be that detailed, but it'll still be useful. You can also arrange for your own mechanic to inspect the car. However, if your mechanic misses a problem, the dealer won't be liable. The Sale of Goods Act covers used cars. That means they must be "of satisfactory quality" (allowing for the fact they're used), as "described to you," and "fit for any normal purpose," including any that you especially specify to the dealer. Warranties or guarantees don't affect these rights.

If something goes wrong after you've bought the car, go back to the dealer straight away. Explain the problem and how you want him to remedy it. If you aren't happy with what they say, contact Trading Standards ( If the dealer is a part of a trade association, they should be able to help you. If you belong to the AA or RAC, they can help, too.

Demanding a Repair or Replacement
If a car is faulty, the buyer has up to six months after date of purchase in which to reject the vehicle. You can demand a repair or a replacement, unless a replacement would cause "disproportionate or significant inconvenience" to the dealer - such as when a repair might be just as good/effective as a replacement or if the defect is minor - then a price reduction may be more appropriate.

The dealer has to prove the car was of satisfactory quality when sold, so there is no need for an independent car inspection. Put your concerns in writing to the dealer and give any additional evidence to support the problems.

Buying Privately
Buying privately might be a cheaper option, but it's much riskier, because you have far fewer rights. The only qualification is that the car needs to be "as described." If a private seller lies about the car's condition, then you can sue him.

Sometimes dealers pretend to be private sellers. It's an attempt to get rid of dubious cars and avoid their obligations. If you see several ads with the same phone number, watch out. If the seller is really a dealer, then your Sale of Goods Act rights apply.

Buying At Auction
Auctions can give great bargains - but you really need a proper knowledge of cars. Before you bid, read the auctioneer's conditions of business carefully. If the seller has a disclaimer on the car, then your rights might not apply.

Buying Online
Buying a used car from a dealer over the Internet can be a gamble, but you have the same rights as if you'd bought it in person. You may even have more rights, including a seven day cooling-off period.

It's always advisable to have an independent inspection and vehicle data check before you buy a used car. The vehicle data check will tell you whether a car's an insurance write-off.

If you discover you've bought a stolen car, you have a problem. The police can return it to the original owner, and you won't receive a penny back - and if you're buying it on credit, you'll still be responsible for the loan. You can sue the seller, of course, but if it's a private sale you'll have to find him first.
Or from autotrader

If you buy a vehicle from a dealer, you’re covered by the Sale of Goods Act 1979. This means it must be:

• Of satisfactory quality, bearing in mind its age, what it cost and how it was described to you. It should be free from serious defects, other than those you were made aware of
• As described. If the dealer says it's a 2-litre, and it's actually a 1.6-litre, you can reject the car and seek a refund or replacement
• Fit for any reasonable purpose. The car should do all that you reasonably expect of it, including any specifics you state to the dealer. If you need a car for towing and the dealer says a 1-litre supermini will be fine, you can reject the car if it struggles

However, if you pay for the car to be inspected, the dealer is not responsible for any faults the inspection should have found and you should always get a statement on the car's condition from the dealer.

If your car is faulty, you have six months from the date of purchase in which you can reject it. You can demand repair or a replacement, unless it would cause 'disproportionate' or 'significant inconvenience' to the seller.

Examples of this would be if a repair would be as effective as a replacement, or if a price reduction would be more appropriate for minor defects.

Dealers must now prove the vehicle was of satisfactory quality when it was sold. This means you no longer need to seek an independent car inspection.

However, if you believe your car is faulty, you must stop using the car immediately, and contact the dealer directly. You need to follow this up in writing, providing evidence of the problems.

If you've bought the vehicle from a franchised car dealer, you can speak to the manufacturer direct. They don't want to get a bad name because a dealer hasn't provided the expected level of service.

What about a private sale?

You have far less legal comeback when buying a car privately. The only obligation for sellers is to describe the car truthfully - but even if they don't, getting compensation from them can be difficult, time-consuming and costly.

However, you can still expect a car to be:

• Capable of passing an MOT, unless the seller specifies it isn't
• Owned by the person who is selling it - because if you later find out it's been stolen, you have no legal right to keep it


Book Reviewer
I dunno since I have never needed somebody elses money to buy a motor, but I imagine if Chavs put a pop bottle full of petrol on top of the N/S/F tyre and torched it, you might have an insurance claim?

Wear a Hoodie and make sure your golf clubs are in the boot. And that in your panic, you put your back out, which ruined your sex life. Claims Direct, Obviously.

Alternatively, if you only have £100, maybe buy a car for £100?
vegnomeat said:
fatboy69 said:
I think it would depend if the car was purchased using a loan or a Hire Purchase agreement. If a loan, no chance. If on H.P then I believe you can do a Voluntary Termination if you have paid a certain amount.

I believe my brother had to have paid 50% before he could hand back his car after he ran in to some money trouble. Don't know how this would affect his credit rating though ?
Once you have paid 50% you can return the car, it doesn't effect your credit rating

Make sure it doesnt, I handed a car back after paying 50% off, the HP company then made a load of non payment entries againt me which knackered my credit rating.

I didnt find out about this until a couple of years later when applying for a mortgage and had to spend a few hours on the phone trying to get the non payment removed. They couldnt remove it and could only issue a letter saying the debt had been "satisfied" luckily the mortgage firm where OK with this.
Most, if not all the replies seem to assume the car is on HP and not a standard loan. Some of the longer ones focus on th erights if the car is faulty or not as advertised. As far as I can see from the original post, there is nothing fundamentally wrong with the car. So the real question is - is it HP or is it a loan?
Regarding Voluntary Termination the information above is in the main part correct. But I can simplify it for you here a bit. Hire Purchase, or HP, is a throwback to a very old system where you hired an item, and when you had paid the last payment, you owned it. The problem was that people would pay 35 of 36 payments, not be able to make the last payment, and as a result, have the hire part of the agreement ended and the item returned to the supplier. Rules were created, mostly as a result of the Consumer Credit Act 1978, which outlined who can do what, and at which stage of the agreement, to protect the consumer and lender alike. The basic rules are, once you have paid half the total amount payable (financed balance, plus deposit, plus interest, plus charges - Then minus any deposit paid and any payments made to get you over half point) you own the controlling share of the agreement and asset, and you can choose to cease hiring it if you want to, return the goods, and stop making payments. It is your legal right to do so, and on your paperwork you should have a highlighted box saying 'Termination - Your Rights'. It can show on your credit history that you have terminated an agreement, but it is not a black mark like a CCJ or default, although when a lender is considering your application for a vehicle, if you have a history of returning the vehicle, it is possible that the may restrict the amount you can borrow as a percentage of the vehicle to limit the risk to them of a recurrence on any new agreements.

The things you need to be careful of are;

You can not be in current arrears or you need to pay them up front before you request the termination.

Some lenders have BAM allowance (Basic Annual Mileage), if you are over the allowed miles you may have a fee to pay.

You must make sure your agreement is HP or Conditional sale, as the rules do not apply to Bill of Sale, Motorloan, Personal Loan, or most lease type agreements.

There is a clause which states reasonable care must have been taken with the goods. This is a bit vague, but wear and tear is ok, but the vehicle will usually be expected to be mechanically sound, have an MOT, be serviced, and not have any physical damage of significance.

If your agreement is HP, you have taken care of it, paid all the payments on time, and have paid more than half, you can terminate the agreement and return the car to the lender, it is your right to do it. All you need to do is call the lender and request a Voluntary Termination and they will start the process on your behalf.

Lastly, the main reason for exercising VT rights, is when you owe more than the car is worth and you want to change it, or a change in circumstances means that keeping the vehicle and making the payments would be difficult and you can't sell it for the remaining amount owed. It is unusual for other reasons to justify VT.

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