Voluntary vehicle termination - option confusion

[dee4378]

Hello, I know I've had a conversation somewhere about this before, however I can seem to find it and there's been a few changes since then. Basically I bought a car on finance in Feb 2016 however I cant keep up the repayments, I've approached the finance company and they've give me 3 options.

Option 1 - settlement figure to see of a dealer will buy however there will be a shortfall in what the car is worth and the settlement figure of approx. £ 2500

Option 2 - Voluntary termination, they take back the car I pay half the agreement £ 6600) less any repayments, this I don't understand as they are not taking any value of the car into consideration so effectively I'm paying half the agreement plus giving them the car is this right?

Option 3 - they finance company take it back sell it at auction, they have stated that even after the auction sale I will still owe £ 5770 (this is the option they are pushing me to take)

I'm so confused option 1 I understand - though they and I know its of no use to me as I'm returning the car because of financial difficulties so I wont have the shortfall as a lump sum

Options 2 & 3 seem to have let out any value of the car is this right could someone please advise

Thanks

[ostell]

Re: Voluntary vehicle termination - option confusion

Investigate Option 2. Your agreement should have a section about cancellation rights. You can Voluntary Terminate when you have paid 50% of the amount that is in the credit agreement. The amount for VT should be in your agreement. If you are not at the 50% you will can pay a lump sum to get to the 50%. You then just walk away from the agreement. No Car but No agreement.