Car Hire Purchase. Ending After Few Months. Help!

lorna87

Hey.



I recently bought a car for £5,500 under a hire purchase agreement with RCI Financial Services Ltd/Nissan Finance, but I have been offered the opportunity to work abroad and would like to get rid of the car. As I am not due to start until January I will still be making about 5 more payments before I leave.


I’ve only made two payments on the car so have paid next to nothing. My garage advised at the time I bought the car I would need to make 6 payments on the car or I would have to pay £450 penalty which I can live with.

What scares me is the total amount payable over the 4 years is £7,000 and I’ve seen posts saying 1/3 or ½ of the price would need to be paid.

The credit agreement gives an example of settling the agreement early. After 12 months £4568 will be owed. So am I right in thinking if I paid this £4,568, the car would be mine?

My understanding was I could sell the car back to the garage and walk away with only a few hundred ££ to pay – now I fear I could owe thousands as the car is not technically mine to sell.

I am thinking if I took out a £4,500 loan and paid off the car and took ownership of it I could then own the car and sell it on – using this money to pay off the loan. I have a credit card with no balance which I could use to pay this off and then pay the credit card off once I sell the car.

The contract also says if I terminate, I need to hand the car back and pay them £3,693 (half of the total amount payable minus any payments paid already) so I will have no car and still have to pay this money. I know it’s my own fault, but I was given 25 pieces of paper to check over at the garage. Think I’ve made an expensive lesson in life.

So, I can hand the car back, have nothing and then still have to pay £3,693 (minus any payments made so far) or pay £4,500 and the car is mine to keep.

Can anyone clarify this for me please? The current monthly fee is £145 which is a lot of money when I have to support myself abroad for a car I won't be able to use!



Thanks.

Lorna xx:mad:

ukbill69

Ask a few dealers if they wish to buy this off the finance company, you might find you only have to pay £500