early ending HP

[imp75]

I'm looking to see where I stand legally with ending a finance deal early. Is it possible?
In march 2013 I took on a finance deal with Fiat for a 500 for my Mrs. It was a 36 month deal with a balloon payment.
Sale price of about 11000, a grand down and 36 x 199. If I sell it today, I doubt i would get enough to cover the balance.
Anyway we re separating (still friendly) but I don't need the car and shes not wanting to keep payments going but will if need be.
The finance office is now closed otherwise I'd speak to them, but I'm still curious, I seem to recall something about paying half the deal then being able to hand back. Would this be applicable in this situation? Would it affect my credit worthiness in the future?
Cheers.

 

[mmm-five]

This is covered by the industry “HALVES & THIRDS” rule:

Where a customer is signing a regulated Hire Purchase agreement, whether fully amortised or with a final “Balloon” payment you have two specific rights, commonly called “Halves & Thirds”. This means that you:-

1. Have the right to “Voluntary Terminate” (VT) the vehicle and return it to the creditor (Fair Wear & Tear, excess mileage & collection rules apply) and pay no more provided that you have paid at least one half of the total amount payable under the agreement (on PCP this included the final payment amount). This amount will be stated on your customer’s schedule.

2. Once you have paid at least one third of the total amount payable under the agreement, the creditor cannot repossess the vehicle without a court order. However, under Scottish law, in Scotland a court order is always required for repossession.

 

[imp75]

Thanks mmm-five. This is exactly the info I was looking for. So assuming I had 10,000 on finance I'd have to pay five grand back before handing car back. In that case, it looks like the most sensible option is simply to maintain payments until the end of the 36 months. The balloon payment is approx 4500 I think. Easy decision imo.