Hire Purchase Vehicle

TimmyH_3

Hi,

I have a Ford Fiesta bought on HP in January 2009 on a 4 year HP deal.

My ex partner has left me and I have been struggling to keep up with the payments. I am now at the point where I cannot afford the vehicle any longer.

In January 2011 I would have had the vehicle 2 years. i have heard you can hand a car back on HP halfway through the term. Is this true?

Is there anyway I can give this vehicle back to ALD who finance it, or is there any way Ford will take it back, or maybe swap for a cheaper vehicle? I have no idea how this all works!

HELP! Please!

Optimist

Providing you have paid at least a half of and it is less than £25k then you can return it.

There may be a few small charges like paying of any credit you took out for insurance

bingo_bango

Optimist is right. It's when you have made payments equalling 50% or more of the total price (including deposits etc) of the car.

Mark_Hewitt

Does this depends on the milage / current value of the car?

LeeSouthEast

Is there any real credit score impact in doing this (may not be of interest to the OP, but I'm curious). It'll show up I believe as a Voluntary Termination on credit reports, but how is this interpreted in the main?

TimmyH_3

Thanks all, so there is no way of handing it back now, I will have to wait until Jan 2011 when I am half way through the 4 year term?

Good question LeeSouthEast - Will be intersting to see what others say on this one.......

Someone must have done this before!?!?!

Cheers Y'all!

bingo_bango

LeeSouthEast wrote: »

Is there any real credit score impact in doing this (may not be of interest to the OP, but I'm curious). It'll show up I believe as a Voluntary Termination on credit reports, but how is this interpreted in the main?

The short answer is no. There are however others how will say that they BELIEVE that it has had an impact on them.

Have a read of THIS thread to see a similar discussion on here. It started a few years ago, but still pertinent. make sure you read the full thread, but post #24 appears to be a rant with incorrect information in it.

Optimist

TimmyH wrote: »

Thanks all, so there is no way of handing it back now, I will have to wait until Jan 2011 when I am half way through the 4 year term?

Good question LeeSouthEast - Will be intersting to see what others say on this one.......

Someone must have done this before!?!?!

Cheers Y'all!

You can hand it back now but you must still bring the total payments up to half the total amount payable. So you at least save on the running costs in the time between now and Jan2011. It should be all on your credit forms actually.

I'm assuming the car isnt damaged as you will have to pay to rectify

standupguy

TimmyH wrote: »

Thanks all, so there is no way of handing it back now, I will have to wait until Jan 2011 when I am half way through the 4 year term?

Good question LeeSouthEast - Will be intersting to see what others say on this one.......

Someone must have done this before!?!?!

Cheers Y'all!

Beware you are confusing paying a half with "half way through the term" - ie jan 2011.

You can terminate when you have paid half the hp price and this figure is shown on your document. The amount you have paid includes your initial deposit and all the payments you have made to date. So, for example if you paid a large deposit you will have paid one half the hp price well before january 2011

You need to check the figures not count the months

TimmyH_3

Right I see, I will have to dig out the T&C's and do the Math. Thanks to you all who helped :-)