can i sell my HP car?

wincer

Hi
I have an expenssive car that is draining my resources.
I am in the process of setting up my own business so need to cut my out-goings as much as possible.
I pay for the car on HP and want to get rid of it, but it is worth less than the amount outstanding on the HP agreement.
I think I am roughly £1600 short.
I have just missed the last payment on it and so am worried they will just repossess it and stick me with a huge bill for their trouble.
I have also heard I cannot sell the car privately without clearing the HP agreement first - does anyone know if this is true?
I will need to get a cheaper car as replacement but am guessing I can't trade it in and get a lower cost HP as my credit rating is soooo bad and I am self/unemployed - any ideas??
Any help would be much appreciated

Thanks

GeorgeUK

With a HP agreement, you can hand the card back and only be liable for 50% of the original cost (minus wear and tear). If you have already paid more than 50% WRITE to them to make a voluntary termination.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_how_to_deal_with_hire_purchase_debt#6

Make sure you send letters by recorded delivery so you have proof of posage and receipt. Some car companies still try to pursue you for the remainder of the money as if the car has been reposessed. Make sure to keep all correspondence and only communicate with them in writing.

Edit: Not sure about selling it with HP payments outstanding. Might be worth phoning the national debtline to check this. Make sure though that the car is worth more than the amount owed and cost of selling before doing so.