Mis-Sold Hire Purchase?

jon_paul

~Brock~ wrote: »

Not a 63k one you can't - unregulated. CCA74 won't apply.

Hi I do not want to terminate my contract as of yet, only when my contract has finished next year, thus would have to pay the balloon payment of £41k

thanks again

jon_paul

redpete wrote: »

Going from buying a £63k car to not being able to pay for it is some change in circumstances!

As I understand it you can Voluntarily Terminate an HP agreement once you have paid 50% of the amount owing. It looks like you haven't got there yet so if you stop paying now it will affect your credit rating.

my loan agreement is unregulated as its over 25k
does this still apply; i do not want to terminate my contract until I have paid the full term. I just dont want to pay for the 41k

thanks

toffe

i think in your case the only option here is to apply for a time order to the court.

that depends on a few things though, mainly that the finance company have to get a court order to repossess.

i would imagine that they would given the sum already paid.


do you have a copy of the agreement? despite not being regulated under the cca it should still detail what your rights are regarding termination and repossession.

jon_paul

toffe wrote: »

i think in your case the only option here is to apply for a time order to the court.

- why should i apply for court order i have not defaulted in any of my payments

that depends on a few things though, mainly that the finance company have to get a court order to repossess.
- why would they repossess ? I can just sell the car at market price and pay the 41k off.

i would imagine that they would given the sum already paid.


do you have a copy of the agreement? despite not being regulated under the cca it should still detail what your rights are regarding termination and repossession.

- why should i apply for court order i have not defaulted in any of my payments

- why would they repossess ? I can just sell the car at market price and pay the 41k off.

- what is strange is i cannot find the agreement clauses.
thanks

do I partly own the car? as i put initial 7k deposit?
and monthly repayments.

ilovebanksMCMLXXXI

Hi

I work in the vehicle financing idustry - I've never heard of a garage/dealerhsip selling personal loans.

You need to read the T&Cs of your agreement in detail.

If it's a standard HP agreements (as I would expect) then chances are that if you missed 2, 3, 4 etc consecutive payments you would be in breach of the agreement and they are well within their rights to take the car back - unfortunately.

Did you take out any PPI (Payment Insurance)?

You could potentially have an avenue to explore their if you can no longer afford the payments and weren't offered PPI - Although becoming pregnant would not be grounds to make a claim but if you've lost your job etc that would be different.

Best of luck

BadgerFace_2

Whoa there everyone!

You do not own the car, it is effectively a lease and you have the option to buy the car at the end of it, which is where the 41k comes in.

The £41k is the Guaranteed Minimum Future Value or balloon payment at the end of your agreement, a standard agreement that most car companies will offer. It's called Personal Contract Purchase.

You either give the car back and there is no charges (unless see below) etc. It will not affect your credit rating, as you are fulfilling the terms of the agreement or IF the car is worth more than the GMFV, you can put the difference towards the deposit on a new car (only the same manufacturer).

Any charges applicable are if the vehicle is in a poor condition or excess mileage.

I guess maybe it's a BMW or something at that price and therefore on 'BMW Select'

jon_paul

hi thanks badge face for your input much appreciated. Yes i have looked at auto trader and face value for the car is about 47k at the moment if sold on the market.
with regard to excess mileage, there is no such thing on my contract i can do as many miles( however to be honest has just been left in the garage so no miles done). there is no problem with regards to repayments. Reason for giving back the car is because I do not want the hassle of selling it to the public at the end of contract, thus would like to give the car back to finance people with no strings attached.

No its not a BMW its a red car. ;-)

ps does that mean Personal Contract Purchase = hp unregistered fixed?

jon_paul

hi badger face, one more question, i di put down a initial 7k deposit down for the car, and borrowed the rest of the money from finance; would i get this back? I gather it would be better for me to sell the car myself or swap with another red car using any equity as deposit

cheers guys for your input

ilovebanksMCMLXXXI

Hi

I may be answer your questions in detail if you can tell me, 100% what kind of agreement you have is.

On the face of it I would say it's a PCP (Personal Contract Purchase) but you would need to confirm that.

It could also be a Lease Purchase.

What financial agreement do you have?

Many thanks

BadgerFace_2

Whatever type of agreement it is, you will not get the deposit back. The way a Personal Contract Purchase works is effectively-

Value of Car - Amount it will be worth at the end of the period = How much you pay to have the car for that period. (very simplified, I'm sure they make a little profit too!)

So all the deposit will have done is lower your monthly payment.