I've got a friend (deffo not me) who has taken out finance on a car after I strongley advised not to, now this person realy does not want this car anymore and has been asking me ways to get rid of the car without paying for it anymore, one of the ways I suggested if the car was 'stolen' but this person doesn't want thier premiums goin up! So if another car were to hit the financed car to write it off what would be payed off? ........p.s I personaly am having nothing to do with this, just a friend has asked for my opinion

Was it financed under a HP agreement ? If so, get your friend to read the termiantion clauses of the contract. In most, especially from the manufacturers, there is a get out clause in that it allows you to give the car back if you have paid more than half of the amount back. It sometimes works out the better option when you consider the resell value of the car against what finance is left.

I think you are rite saying that but my friend has only had the car for 4 months so its a long while till half the car is paid off

Any insurance payout will be based on the value of the car. This is often significantly less than what is owed on HP....(Hence GAP insurance)

 

He would still be liable for the shortfall.

 

So unless he has GAP (and it pays out), he's stuck with it