Car Hire Purchase Repay In Full

pmday2013

Hello,

I recently bought a car in July on hire purchase, i've now decided that i'm going to go to University in September 2010 (I plan to keep the car till June 2010). Now the key financial information is as follows:

Amount of credit: £4499.00
Duration of agreement: 60 months
Total amount payable: £7428.28 (including £800 deposit)
1st payment: £170.00
58 payments of £106.92
Final payment of £256.92

1st Option: I have spoken to the garage that I bought the car off and they said that I could re sell the car back to them and then I pay back the difference to of what they give me and what I owe Black Horse (if anything).

2nd Option: It states on the finance agreement that 'you have the right to end this agreement. Tt do so, you should write to the person you make your payments to. We will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £3714.14. If you have already paid at least this amount plus any overdue installments and have taken responsible care of the goods you do not have to pay any more'

3rd Option: When I rang Black Horse automated service it stated that I owe as of today £4452.33 and that I could pay off the loan with that? Does that meant that I do not have to pay the charges for credit?

Which option would be best? Help please????

Thank you in advance

pmday2013

Please help me !!!!

Sally22_2

If you want to pay it off in full, they remove the interest/charges so yes, that 4452.28 is correct.

pmday2013

If I go for the option where I terminate the agreement halfway through by paying half of what I owe does that figure include the £800.00 deposit that I paid originally? So in effect it would be my payments from now to June next year that would come off the figure owed along with taking off the deposit of £800 which would leave (next year) with around £1500 to pay.

Thanks again.

withabix

It would not include the deposit (as that wasn't part of the financed amount) and don't forget that you would have to hand over the vehicle as well.

This option is done quite often where the vehicle has racked up a very high mileage since the HP started, but does not make financial sense otherwise.

Your best option from a financial perspective would be Option 1, although it may be worth hawking the car around other dealers first, as used car values have risen so you might get a better resale price elsewhere.

CLAPTON

the total amount payable in the agreement is 7428
you can hand back the car after 3714 has been paid

you have paid a deposit of 800 so that leaves 2914
your first payment was 170 so that leaves 2744
your monthly payments are 106.92 so you must make 2744/106.92 = 26 payments

pmday2013

Is it possible for me to ask someone else to take over the payments of the car, like my cousin because this is also an option? Would they let her take on the agreement?

CLAPTON

pmday2013 wrote: »

Is it possible for me to ask someone else to take over the payments of the car, like my cousin because this is also an option? Would they let her take on the agreement?

No, but there is nothing to stop your cousin giving you the money and then you continuing to pay.
Or your cousin getting a loan and paying off the HP debt with it.

I'm not sure what you are trying to achieve but make sure you don't invalid any insurance

pmday2013

I'm just trying to work out the cheapest way to get out of this hire purchase agreement, which option do you think would be best?