Non Regulated Hire Purchase Agreement Help Please!!!

ljcb123

Hi. I hope I have put this in the right place. Please accept my apologies if I haven't. We took out a HP Non regulated car agreement out 45 months ago. When we took out the agreement at the dealership, the salesman said we paid x amount for 48 months and on 49th month we either paid a balloon payment of £21,535.00(!!!!) or handed the car back. Obviously we intended to hand the car back. I phoned the lender to see how I go about handing the car back and they have said because it is an unregulated HP agreement I can't hand the car back but have to pay the £21k. I don't have this so don't know what to do. My partner is self employed and has accrued some bad credit in the last few years due to his business struggling. We are ok now, but I don't think we could borrow that sort of money and don't really want to! Please can anyone help me. I would really like to know what our rights are, if we have any....:o Thanks

standupguy

You need to find out the value of the car on the open market.

If it is worth over £21535 you can sell and pocket the difference.

If it is under you will have to make up the shortfall at time of sale.

Alternatively, if you want to keep the car, the Finance company may agree to write the £21535 residual over another two or three year period if you can afford the monthly payment (adding further interest charges of course)

TonyMMM

You need to look carefully at the paperwork from when you bought the car - does it say you have a loan , hire purchase agreement, or a personal leasing plan ?

iolanthe07

If the agreement you signed stated that you can hand the car back, then the dealership cannot refuse to accept it. Take a look at your copy of the terms and conditions you agreed to originally - this document will make clear what your rights are. It's no good going by what a salesman says; you have to read documents carefully before you sign them, especially for a major item like a car.

ljcb123

Hi it says hire purchase (non regulated). I know we shouldn't have trusted the salesman, but we did not check the agreement to say we could hand the car back....it definitely doesn't say it anywhere. I can't believe we were so stupid

iolanthe07

Oh dear. Were there any independent witnesses to what the salesman said? Also, I think you need some proper advice, perhaps from a solicitor or the CAB. I thought all HP agreements under £25k were regulated, but someone qualified in this area can tell you. Whatever you signed, your statutory rights cannot be taken away.

PNPSUKNET

iolanthe07 wrote: »

Oh dear. Were there any independent witnesses to what the salesman said? Also, I think you need some proper advice, perhaps from a solicitor or the CAB. I thought all HP agreements under £25k were regulated, but someone qualified in this area can tell you. Whatever you signed, your statutory rights cannot be taken away.

Hi I think that it was over £25k as the op says that pays 48 mths followed by a balloon payment. So it would be unregulated. But that is how they get you.

alistair1234

All HP agreements over £25k are non-regulated. Given that you have paid for the car for 48 months and the balloon is for £21k then this will deffinately be >£25k and therefore unregulated.

I used to work in Collections and Recoveries for a bank and this was a common complaint.

What you have been sold is an unregulated HP agreement, lower monthly payments with a balloon at the end.

The Dealer has been confused with a PCP where for deals under £25k (cost of vehicle, doesnt matter if interest takes it over) you pay lower monthly payments but get the option of handing back once you have paid the last normal monthly payment.

There was a change in the consumer credit act about a year ago that may have changed some things (ie repossesion), non-regulated could be repo'd after only 20 days if they wanted to.

Best thing to do is to try and sell car for what you owe, or if you have anything from the dealer that says you can hand it back, then speak to FSA or Ombidsman.

Your finance company will say is nothing to do with them and take it up with dealer because he acted on behalf of them.

[Deleted User]

Without wanting to appear rude, how much is the car worth? It seems like an awfully snazzy car to be costing that much?

Eric_Pisch

i have an un-regulated hp agreement with VW, It was sold as a PCP with balloon payment, when i checked a few months back for the settlement they said i could hand it back or pay the balloon.

is this implying they can change there mind and force unregulated PCP agreements to pay in full?

Peeky

I think as long as it is clearly stated on the document you are fine. In the case of the OP this is missing from the signed docs.

This has already been mentioned. What does yours say?