Hire purchase agreement on car!!

karinalou

I bought a car 2 and a half years ago and stil have 2 and a half years to go before it is paid off. Recently circumstances changed, and to save a bit of money I would like to try and get rid of the car. How can I do this? If i sell it privately it would not make enough money to clear to outstanding finance (and I also dont know if I can legally sell it!).
I have read some documents online which tell me after half of the term agreement I am allowed to give back the car and tewrminate the agreement, is this true even thought the agreement says I do not have the right to terminate the agreement under the comsumer credit act 1974.

Please help as i am very confused and would like a solution!!!

System

Hi

You can return the car to the creditor under your right to 'voluntary termination'.

See the following link to National Debtline for information on your rights and procedures.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_how_to_deal_with_hire_purchase_debt

If you still have questions after reading through it just ask, I returned a car under VT last May.

Regards
UNDERGROUND

CLAPTON

how much was the car?
how much was the total cost including interest

Tubbss

In order to voluntary terminate the agreement needs to be hire purchase - please check your agreement and confirm it is an hire purchase agreement and not a standard loan agreement.

If it is hire purchase, did you purchase any insurances? If so you may not have paid enough to VT without having a remaining liability even though you may be halfway through the term.

inmypocketnottheirs

Just to reiterate I have also returned a car on hire purchase via a voluntary termination, and it does not affect your credit rating in any way. As Tubbss says just make sure you have Hire Purchase agreement, not a Motor Loan or a personal loan, and ensure that you have made the half payments required.

Tubbss

Hi,

The right to cancel is different from the right to terminate -basically it is stating that you have no cooling off period etc from the time of purchase - this is totally different from the right to voluntary terminate.

System

Hi karinalou

Did you actually read the information on the National Debtline website?

Everything you're asking is explained on there, along with a template letter to write to the HP company.

Be aware that they don't like you exercising your right to voluntary termination so it is likely that they will try to dissuade you from doing so or even try and tell you that you can't. Ensure you send any correspondence by recorded delivery.

Regards
UNDERGROUND

karinalou

Yes i did actually read the info, i was just checking before i sent a letter, wanted to get some opinions first- no harm in that!

karinalou

What rights would a lender have if it was not HP but a fixed sum loan agreement? in this instance could i sell the car and pay off part of the outstanding balance? Also, if I sold the car for less than the outstanding finance, can I still transfer to someone elses name whilst I am paying the difference on the finance?
For example, if I owed £6,000 and sold the car for £4,000- could the buyer still have the car in their name whilst I am repaying the £2,000 left on the finance loan agreement

System

Is it an HP agreement or not?!

What does it say at the top of the agreement?

UNDERGROUND

karinalou

I told you underground that IT IS A HP AGREEMENT, i know how to read writing on pieces of paper funnily enough, im simply asking a question, on behalf of someone - dont respond if your going to be an idiot- these forums have far too many cocky idiots on them. How about someone who can actually have a conversation come and reply, if not please stay away and dont get involved if your going to be immature