Non Regulated Hire Purchase Agreement Help Please!!!

[Deleted User]

I can't believe it's a Nissan Micra. Sorry for being cynical. You would have to be mad to enter into such an unfavourable agreement for a Micra, surely?

ILW

I think the Micra comment was a joke.

k1dda

Not sure if anyone is still on this thread, however hopefully I can add some value here.

The consumer credit act was changed and now all private individual agreements are treated as regulated regardless of the amount, this also applies to non limited partnership and sole trader finance. The 1/2s and 1/3s rule SHOULD apply so hopefully you will be able to voluntary terminate if your vehicle is worth less than the balloon payment. If the deal was a "fixed sum loan agreement" however this won't apply as it only applies to "hire purchase" documents. I know of at least 2 of the big players back dating deals on their book in alignment with this change.
I have no doubt the salesman mis-sold this deal to you under the pretence that it was a guaranteed future value and the finance company will step away as they didn't sell the deal to you themselves.

Going forward it will be worth making sure that your balloon payment is a guaranteed future value rather than a pure balloon payment which is payable on the month it is due regardless of the value of the vehicle.

Hope this helps.