Getting out of Hire agreement contract- help!!!

chancey

My husband got a van from vans Direct in Nov 2007. He put down a deposit of 2261.88 and has been paying back 221 a month since.

We now no longer need the van as he his going from self employed to employed and the company supply a van.

I have just requested the settlement figure:
Future rentals 4910.36
final rental 4036.
VAT 1390.15
Total 9333.86

The van was worth about 12k when we bought it and about 6-7k now.

We have to sell the van privately and then have to make up the loss of about 3 k to pay the finance off.

I am so very cross as I will have to make up the loss on our credit card which we have been hammering away at this year and cleared 3k on. Right back to square one!!! But with the knowledge we have spent nearly 20k on a van that wont even be sat on our drive.

Do I just have to accept we have made a really bad choice or is there something else I can do???

Any help or advice so very appreciated.

Inactive

No need to post the same post twice...;)

I don't think that anyone is going to be able to offer much help with this, it is sadly part of buying on these type of deals.

I hope that I am wrong, but I don't hold out much hope for a way around paying up, or just keeping the vehicle.

chancey

Thanks for you reply.
What a rubbish expensive lesson to learn!

Inactive

chancey wrote: »

Thanks for you reply.
What a rubbish expensive lesson to learn!

Indeed, sorry I could not be more helpful.

jaydeeuk1

chancey wrote: »

Thanks for you reply.
What a rubbish expensive lesson to learn!

Don't worry, you're not the first and deffo won't be the last.

Contracts/finance etc isn't always the evil its made out to be, just a case of reading the small print.

Is there no chance he can refuse comp van, and ask for extra in salary?

Scuttsy

Yet there may be some chance. If the agreement is a regulated hire purchase agreement under the terms of the contract once 50% of the total amount to be paid under the agreement is paid you can terminate the agreement perfectly legally and hand the car van back to the finance company. Give them a call and ask if you have paid more than half consider this option as it will wipe out the negative equity.

marmitedog

According to your figures, and assuming it is a 48 month contract, you will have paid 50% of the outstanding finance in Oct 2009 (after 23 months), so you can hand it back without penalty.

bigjl

Oops, I answered the other almost identically titled thread posted a few minutes before this one..................

Scuttsy

marmitedog wrote: »

According to your figures, and assuming it is a 48 month contract, you will have paid 50% of the outstanding finance in Oct 2009 (after 23 months), so you can hand it back without penalty.

The final rental may cause a problem with that though... Still worth asking though.

chancey

Thank you so much. I will give them a call tomorrow and see if I can hand it back. fingers crossed.

chancey

quick update:
have mailed the company that have now taken over vans direct stating I wish to hand over the vehicle next friday and they have said:

As you are aware we gained your account following the demise of Vans Direct who were your vehicle supplier. The information we hold on this contract is as follows:

The vehicle contract is a Finance Lease (a user agreement) and not a purchase agreement.

You are right in saying that if the agreement was a purchase agreement that was regulated by the Consumer Credit Act then there is an opportunity to voluntary terminate the agreement.

I requested clarification that if I it is a finance lease do I not have the option to return the vehicle and they have requested copies of the original agreement (which I can not find) to give me correct advice.

Is there a big difference between finance lease and purchase lease?

What do I do, if we or they have no copy of original agreement?

Any advice greatly appreciated

vicki