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Topic starter
02/03/2021 9:24 am
Hi there , I am a year into my trust deed. Part of my agreement with my trust deed was I was allowed to keep my car aslong as I continued making the payments and if at the end of the trust deed the car exceeded the value of 3000 I would need to sell this and the money would goto trust deed. I still have 3 years left of payments and the car wouldn’t be worth 3,000 when my trust deed ends. I was wondering if you could advise me am I able to give the car back I have had this under 2 years I understand this is something I would need to take up
With the finance company etc , if I did would this affect my trust deed, would the amount owed to the finance company be added to this? Reason for giving back is my dads offered me his car to use when he is working away, so it would make more sense and one less bill for me. Many thanks
02/03/2021 9:55 am
I’m sure the pro’s will reply soon but my thought is that any money owed to finance company wouldn’t be added to your trust deed and if there was nothing owed to finance company by handing the car back you would still end up paying your current car payment into your trust deed. Just my thoughts.
Dazza
02/03/2021 9:59 am
Welcome to the trust deed forum Klyp.
I'd suggest talking to your trust deed provider before handing back the vehicle. You'll want to check that they don't have a concern about you potentially choosing to introduce a new debt into you trust deed.
The other thing to consider (and perhaps talk to your trustee's team about) is what the implications of removing this expense will be for your trust deed payment. Your payment is based upon affordability, so if you remove the car finance payment (and nothing else has changed) your trust deed monthly payment could increase by the amount of your car finance payment.
To put it another way, you might have one less bill to pay but you could find that your total bills (including an increased trust deed payment) add up to the same amount as now.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
02/03/2021 10:03 am
Hi Dazzler359.
That's mostly correct.
However, if a car finance agreement existed when the trust deed was signed then any lump sum liability for an early return of the vehicle should be covered by the trust deed.
That's the good bit, but if this extra debt significantly disadvantages the other creditors then this change could be of concern to a trustee.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
02/03/2021 10:30 am
Hi everyone thanks very much for the quick response and advice. I will speak to my trust deed company.
Thanks
