Voluntary Termination of HP

chipsdog

Looking to Terminate if possible, however the paperwork says:

Fixed-sum Loan Agreement
Gives all the car details including Registration number

There is some information about "your right to repay the loan eary" giving figures

Is this a Loan or a HP Agreement?

It is with GE Money

Any help please

fatbelly

chipsdog wrote: »

...the paperwork says:

Fixed-sum Loan Agreement ...

Is this a Loan or a HP Agreement?

It's a loan

driving_school

:j No Need To Worry!

An HP Agreement is just a way for a person or company to aquirering a item without having to pay cash for the item in full at the point of purchase.
HP stands for Hire Purchase.

NOTE THE WORD HIRE!
YOU ARE HIRING THE ITEM!
YOU DO NOT OWN THE ITEM UNTILL THE LAST PAYMENT IS MADE AT THE END OF THE AGREED PERIOD OR TERM AGREED WHEN YOU SIGNED THE CONTRACT THIS COULD BE OVER 12mnts 24mnts 36mnts 48mnts or even more.

YOU HAVE THE RIGHT TO CANCEL ANY HP AGREEMENT!
AT THREE POINTS WITHIN THE AGREED PERIOD/TERM
(1st point) THE COOLING OFF PERIOD
(2nd point) WHEN YOU HAVE PAID TWO THIRDS OF THE TOTAL AMOUNT
(3rd point) WHEN YOU HAVE PAID FOR THE ITEM IN FULL. At this point there is an nominal amount built in to the last payment that gives you ownership of the item that you've been Hiring over the term of the agreed agreement.
The amount to give you ownership would be so small that you would be silly not to pay this amount.

At some time within any Hire Purchase agreement the Value of the item decreases it's values because of ware/tear.
Prime example You buy a new or second hand car it's value is normal set by a Trade Book taking into account the average mileage 0f ether 12-15 thousand miles a year if the milage excedes the above the value drops considerably to the point where you owe more than what the cars worth.

Take my case I Brought a new car to use as a driving school car cost 8K I do in the excess of 50 thousand miles a year after the first year the value drops down to the value of a car that is the same as a five year motor.
Do you get it?

That car is still owing about 5-6 Thousand pounds to the finance company but I would be lucky to get a Thousand quid if I sold it so I would lose a lot of money at this point!
Now if I waited untill I had paid Two thirds of the 8 grand amount it would still have no resale value but I would still owe a few thousand pounds to the finance company! So really at this point the cars nakered.
It not worth my while keeping the car what with repair bills for a car that in real terms is a 5-6 year old motor haveing to pay more and more to keep it on the road.:mad:

So at the point where I've made hire payments of two thirds I contact the finance company and inform them I intend to cancel the HIRE Agreement.

It's not my fault that the car is only valued at the price of a 5 year old motor they know that when you Hire/buy a car you intend to drive it they don't stipulate a Min/Max mileage in the agreement and as far as I'm concerned all I did was to HIRE the car from the finance company I never agreed to purchase it!

Okay thats got that motor out of the way I then take out another
HIRE Purchase Agreement

NOTE!
NEVER! NEVER!
Go For A BANK LOAN OR PERSONAL LOAN
AS THESE DO NOT HAVE The Two Third CANCELATION CLAUSE
within the Agreement
Like with the HP Agreement

BY GETTING MONEY TO BUY A CAR
From a Bank or any other means with the words PERSONAL LOAN
You lose the right to return it to the financing company

IF YOU DO GO DOWN THIS ROAD!
YOU WILL OWN THE CAR OUT RIGHT
NOT THE FINANCE COMPANY
THEY CAN NEVER REPO THE CAR BECAUSE THEY ONLY LOANED YOU MONEY
FOR ANYTHING THAT YOU MAY WANT TO PURCHASE
SO! NEVER SIGN UP FOR A LOAN IN A GARAGE UNLESS IT's A Hire Purchase Agreement make sure that it's Hire Purchase and not a personal Loan when buying a car


AND WHEN THE VALUE OF THE CAR DROPS BELOW WHAT YOU OWE
YOUR FIND YOURSELF STUCK WITH A MOTOR THAT YOU WILL NOT BE ABLE TO RETURN
IT's Then up to you to try and get what ever you can by selling it privatly
Beleive me you won't find anyone to buy it!

Remember! The H in HP Stands for HIRE!
Upon signing the agreement you agree to

HIRE THE ITEM WITH THE OPTIONS TO ETHER RETURN IT TO THE FINANCE COMPANY WHEN YOU'VE PAID TWO THIRDS OF THE TOTAL AMOUNT

OR PURCHASE THE ITEM AT THE END OF THE AGREED TERM
WITH YOUR LAST PAYMENT CONTAINING A NOMINAL AMOUNT TO GIVE YOU THE RIGHT TO PURCHASE THIS ITEM

REMEMBER NOT A PERSONAL LOAN!:mad:

YOU MUST BE THE ONE TO RETURN IT!
(They will not pick any item up)

They just hate this clause in any Higher Purchase Agreement but there's buger all they can do!;)

No Finance Company Can BLACK LISTED OR HAVE ANYTHING ADVERSE
PUT ON TO YOUR CREDIT RATING!

It's your right to Terminate or Cancel any HP Agreement as long as two thirds of the total Price of the item have been paid.

That's why they can NOT reposses any item that's had more than two thirds paid without obtaining a court order.

(There must not be any arrears on the account if there is make sure you make up your payments to bring the account up to date before teminating the Agreement/Contract)

It's all there in black and white on your HP Agreement HAVE A LOOK it's your right to Terminate your Aggreement and return any item as long as the item is in a fair contition for the purpose it was intended.

If you want to Cancel an Agreement on a car or any vehicle where the mileage happens to make a car worth less than the book value that's not your concern and no reason for the finance company to refuse you your rights to terminate the agreement on that vehicle.

SO! you have nothing to worry about!

Someone ellse on this forum has said be on the safe side check your credit file after you've returned the item and if there is anything adverse within the file contact the company and get them to remove it
This MUST BE DONE at no cost to you.

Good Luck

P.S
The item being returned should be in fair condition ie you can't return a damaged car it must be in a clean reasonable condition and have a current MOT should not be neaded it does not have to have any road tax on it as long as it's returned to the finance company on a trailer!

The last thing you wont is to be pickup by the Fuzz! that's really painfull.
Mind you being swung round by the tit's is quite nice!

westentertainer

i have vt my car they still want me to pay gap and breakdown cover surely the breakdown cover ends when you vt the car any help please

trigger39

I am about to go down the route of a voluntary termination, but i have had a towbar fitted to the vehicle...is this likely to be a stumbling block?

chickencurry

westentertainer wrote: »

i have vt my car they still want me to pay gap and breakdown cover surely the breakdown cover ends when you vt the car any help please

Hi,
I would also like the answer to this question as Welcome Finance are trying to get £1600 out of me after VT my car for outstanding insurances, healthcare, ppi etc? Any help appreciated please. x

nurse-money

What happens about VT and servicing of your car?

I'm planning on VTing in April and have missed one of the services. In my documents it stipulates that the service manual should be filled in, although it does not say the car has to be serviced. It has the usual the car should be in a fair and resonable condition bit too...

aphantom67

hi all im actualy in the process of doing a v/termination, just today i had a visit from a guy to check out the vehicle and im not happy :mad:
he is billing me because i dont have a spare key, i was only given the one key when i bought the vehicle, and also besause there is a small tear on the drivers seat, its a taxi and i would put this down do fair ware and tear, also for not having a service history and for two tyres, tyres are not bald but they are nearing the end of their lives. total bill is £615.00, its not the guys fault hes only doing his job but i feel the company are doing their best to try to screw every last penny out of me. so i will be contesting his report, will post again when i know more. so its not just as easy as contacting the company and they will take it back.

frenchy10

Hello, can anybody help with the following. I sent a request to terminate the agreement and i had this reply of "the goods have been ordered under the flat rate agreement which there is no cancellation period. They then say i should refer back to the retailer to request cancellation".
Is this right

dacdesigns

I vt'd my car a couple months back, its a pain but well worth it. I owed about £8,000 for a car that sold at auction for £4,000 (they sent me a letter saying how much they sold it for) I did mine half way through the term. They offered to collect the car for a fee (£130) or I could take it to the auction house in Leeds, I live in Manchester. I opted for the drop off so I could be there when they checked the car over, I then got the train home. I had help from here and the debtline place listed above, they are really, really good and worth giving a call if you are unsure about anything. They sent me a pack with loads of info and gave me step by step advice over the phone, they advised me to take photos of the car before giving it back.

I Now have £230 a month savings from giving my car back, I saved up just before giving the car back and bought a cheap car for £2,000. The best thing I have ever done! The car I bought is a 02 plate mondeo and the car a gave back was a 04 Astra and I can honestly say im more happy with the mondeo as its bigger for my family.

I hope this helps someone and please remember if you are unsure just call the debtline.