Returning a car on HP (Renault)

raypadams

Hi All,

After seeking advice from the CCCS about our financial situation we have decided to terminate the hire purchase agreement on our Renault Clio. We were told that to do this we need to write to RCI (Renault Finance) to let them know this is what we wish to do. It has to be done in writing to make it legaly binding.

I have read the web pages linked below but was just looking for some advice about what to put in the letter. i.e. is there any official wording that has to used etc.

Also, does anybody know if we can return the car ourselves, or do we have wait for them to come and recover it?

Any help appreciated
Cheers
Ray

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013226
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_how_to_deal_with_hire_purchase_debt

Buffythedebtslayer

I don't know anything about hp but didn't want you drop off the page, I did a search but couldn't really find anything helpful.

I would have thought you would have to return it, to properly end the agreement, I mean if they can't collect it for some reason you still might be liable for that months payment? so it in your interest to take it to the garage??

Hope some one with a clue comes along!

xx

mrssainted76

Going on our own experience of handing a car back, i would check there is no extra payments to be made, if you aren't long into the agreement you may be liable for paying a penalty check out your paperwork, when we handed our car back we had already paid over half the payments so did not need to pay anything extra (the length of time may differ between companies/agreements so check out what yours says), we phoned the company and told them we wished to terminate the agreement and they sent a form out to fill in, after they received this they arranged to come out and inspect/collect the car, if there is any damage to the car you will have to pay for this to be fixed before they can auction it off, we had to pay for new wiper blades and a broken aerial, once this was paid we received confirmation that we owed no further sums to them

raypadams

Our intention is to declare bankruptcy, so we are just getting things in order before we do this. We were advised by the CCCS that the car would need to be returned before we take any further steps. They told us we had to do declare the termination of the agreement in writing, not over the phone, otherwise it would not be legal.

As for damage, I wondered about this, there is a small scratch on the rear wheel arch and scratches on one of the alloys. We were told by the CCCS that any repairs would be included in the final 'bill' from the finance company after the car was auctioned off. It seems a bit odd that they would say you have to repair it before they take it away. We are not in a position to be able to pay for any repairs up front.

The position at the moment is that we bought the car new last April and have not made a payment since the end of September last year. We fully accepted that we were going to lose the car but were waiting for them to come and repossess the car, we did not realise we could end the agreement ourselves. Now we know we can do this it is obviously the best option. I just want to be sure we are going about it in the right way and want to be sure we know our rights.

Many thanks for the responses so far
Ray

mrssainted76

we didn't have to repair the car first, when they collected it they did an inspection, we then got the bill for the repairs, although i think we could have done them ourselves before they collected it but it wasn't for that much money and saved the hassle of us doing it so we let them sort it out. Ours was in writing we jsut made the inital contact over the phone with them. I would check over your loan agreement though, there should be a bit on it which details penalties for handing the car back and i would think because it is not long into the agreement you will be liable for the shortfall (don't quote me on that though)

* edit to add this was about 5 or so years ago we did this, things may have changed since then

raypadams

Ahhh...I see. Thanks mrssainted76

princesspugh

My little sis had a Peugeot comvertible for about a year that she couldn't afford the repayments for - she rang them and said that to them and they arranged to pick up the car from her house. She thought that was that till a couple of months later they said she owed £1000 and that she had to make monthly installments. She arranged it to start two months later, but then the following month had a phonecall to say she had to make a token payment or face going to court, she then paid out her last £50 to them coz she was so worried.