Handing my car back

angelicmary85

Well you sound very sure so I hope it all works out for you!

angelicmary85

sorry cyril, I thought you were the op!

standupguy

cyril82 wrote: »

yes but this loan is secured on the car as there is finance showing as outstanding on the hpi, unsecured personal loans do not show up on hpi checks.

Sorry to burst your bubble Cyril but you are wrong.
Brock is absolutely right.

Just because a car is registered with HPI it does not mean that it is the subject of a HP agreement.

For quite some time with the half rule. low deposits and plummeting trade values finance companies have been using loan or motor loan agreements which in essence are a just a personal loan. This has been done to stop cars being returned on the half rule and the Finance company losing money.

Whilst the Finance companies do not have title or ownership of the car as it would with a HP agreement, nevertheless they register with HPI to protect their interests.

The point of doing this is to get immediate knowledge- from HPI - if the customer is trying to sell the car so that they can ask for their settlement outstanding at time of sale.

Also, a hpi check from any interest party initiates a conversation with the Finance company as the marker still needs lifting before a sale.

In this case it is clear that the customer does not have a HP agreement and cannot return the car as this is a loan agreement.

ILW

To the OP.
I would take the advice given by the contract hire company with a pinch of salt, they have a vested interest in selling you the deal. I have in tha past looked at these schemes and never seen any advantage in them. You can buy a new car now at rates of about 3 or 4%. If you add up the contract payments I think you will find that you have paid for the car in full over about 3 years but then have to hand it back with no residual value at all. I bought a Nissan thru the company on a 3 year deal and the payments were virtualy the same as leasing, but in the next six months I will own the car with a value of about £5000. Try taking your existingcar to a main dealer and see what they will offer as a trade in, they will also sort out any outstanding finance for you.

cyril82

All of the arguements against what i have said equate to the lender in some way lieing about the agreement. If the loan is not secured on the car and they register it as secured on the car on the hpi, they lied to the hpi company as there is no facility for registering a debt against a cars history unless the loan is secured on the car.

if the loan is secured on the car it is either going to be an hp agreement (most likely) or a motor loan with bill of sale (less likely).

If the loan is an unsecured personal loan it will not show on the hpi check, unless, again, the loan company lied to the hpi company.

I recommend you do a cca request to establish the type of agreement you have, it must tell you what type of agreement you have to be drawn up properly.

Then come back and post what type of agreement it is. otherwise we could argue the possibilities for ever. i'd bet on it being a hp agreement on a reasonably new car though, as it was when bought.

cureforsanity

Hmmmm, how will I go about this?

We've had vehicles for years via the contract hire company and we agreed that we would only proceed with this agreement if we could VT the existing agreement on the existing car.

Their legal department seem to be pretty on the ball, and have faxed me a copy of the HPI report which seems to show outstanding debt on the car, not against my mrs.

I am still in a conundrum as to what kind of agreement it actually is, as it says nowhere on the document if it's HP, motorloan, personal loan or otherwise.

Surely they are bound by the cca to make it clear just what kind of agreement we have entered into?

~Brock~

cyril you seem to offer only the rather dangerous assumption that in all such cases the lender must have 'lied' in some way. In the real (i.e. non CAG) world, that assumption is not always the correct one. I am not defending the Funding Corporation, but I am also being careful not to jump to incorrect conclusions, a risk which you seem quite happy to take.

There is no need to ask for a copy of the agreement - the OP has already stated they have a copy. The type of agreement it is should be clearly stated in its heading. I have asked the OP to post back with what it says and await their reply on this.

Regarding the unenforceability aspect - there is no risk of credit file damage by asking for a copy of the agreement - that is not what I said. If, however, the OP takes it upon themselves, maybe egged on by the self appointed experts on the subject who inhabit forums yet suffer no consequence for the advise that they give, to stop making payments over some alleged technicaility then there is a very real risk that their credit rating will be damaged.

I don't appreciate being told that my advise is terrible. It is based upon almost 30 years of experience in the field, and is offered to help the OP who presented a genuine question and asked for, I assume, unbiased advice. What is your advice based upon may I ask?

~Brock~

cureforsanity wrote: »

Surely they are bound by the cca to make it clear just what kind of agreement we have entered into?

Can you please post the exact wording at the top of the agreement.

E.g. "xxxxxxxxxx agreement regulated by the Consumer Credit Act 1974"

What does the xxxxxxxxx say?

daveyjp

You are dealing with someone who represent Carcraft - are you surprised you are having problems?

If the loan is part of a HP you can cancel and hand the car back - details will be in the small print of the agreement. I've done it with a Black Horse car finance agreement and had no problems whatsooever.

Handing a car back DOES NOT affect your credit score as it is a legitimate way of terminating a car finance agreement and you have not defaulted on payments.

ILW

daveyjp wrote: »

Handing a car back DOES NOT affect your credit score as it is a legitimate way of terminating a car finance agreement and you have not defaulted on payments.

It does show on your credit file though. How this may be interpreted by other lenders is up to them.