how to get out of hire agreement

jayne7868

Hi. I am new to this and would really appriciate any help.

We took out what we thought was a hire purchase agreement with vans direct 2.5 years ago.

The vans engine has exploded. It was warranted for 3 years or 110k miles - it has done 118k miles, nothing for a van like this.

We have contacted the finance lease company as vans direct have gone bust. We need to know if the finance company have any obligations as to the quallity of the van. They say as we did not take a maintainance contract, all work is our responcibility W were never offed this at point of sale as we 'thought' we were buying this.
They want all remaining payments for the next 25 months as an early settlement figure. We can not pay this and buy a new van. we will have to cease trading.

We are being pushed into signing a new contract with another leasing company (taking over from vans direct) as they say paperwork is wrong. ( We bought the van in my husbands name but payments come form a ltd company - Vans direct knew this as we had been trading as ltd for only 6 months at point of sale they said it was better for a credit rating. ) we wont do this, as we are uneasy about it.

Can we, as we have paid 35 of the 60 payments plus 3 as a deposit simply hand the van back without incurring bad credit? the agreement is covered by the consumer credit act1974.

Any help would be very very much appriciated

Fiddlestick

jayne7868 wrote: »

We took out what we thought was a hire purchase agreement with vans direct 2.5 years ago.

Was it or wasn't it hire purchase?

What does it say on the paperwork?

KingElvis

No offence but I don't think they'll take it back with the engine wan*ed

PNPSUKNET

It has to be in a working condition, what type of hire agreement was it. If it was in your husbands name he is liable not the ltd company

jayne7868

It is a Hire Agreement regulated by the consumer credit act 1974.

We are getting the van mended to our cost, Once done can we hand the van back, will full mot? We have made 35 of the 60 payments plus 3xpayment as a deposit.

It was taken in my husbands name but we wish to avoid a blip on our credit history

Many thanks for any advice

claudia123

Hi there....dont know whether or not this will help but here goes

I used to work in the motor trade and as far as i can remember ...when you have paid so much yu can do whats called Voluntary Terminate the agreement and it has no effect whatsoever on your credit record...i did it myself a few years ago with a car i had bought

Hope everyting goes ok

Hax

When I had a HP agreement for a car many years ago, I was shown a clause that effectively said that once I had paid 50% of the debt, I could simply hand the car and keys back to the HP company and that would be the end of the agreement.

Not sure if things are still the same though

jayne7868

I am hoping that i can hand it back and walk away.

It is a hire agreement Not Hire purchase.

Hp you can walk away - covered by the cca1974
Leaseing you can't - not covered by cca 1974

It is a private 'hire agreement' as such covered by the consumer credit act ( written all over the agreement )

Any help really really appreciated

inmypocketnottheirs

A Hire agreement is not a Hire Purchase Agreement.

Is there any section about early termination.

In the agreement it will list all your liabilities and it will tell you what you can do and when you can do it.

However, even with a voluntary termination, the vehicle will need to be returned road worthy and in good condition for the age and mileage.

In reality, I think that you are better advised in trying to replace the engine or repair it, and then maybe part exchanging it and starting again.

What exact van with which engine is it, and what is the exact fault?

jayne7868

I understand a hire agreement is not a Hire purchase. But what is the differance when covered by cca 1974

A hire agreement is not normally covered by cca1974 this one is.

The agreement 'should list liabilities according to the cca1974 but it does not.

The van a ducato lwb a 57 plate is being repaired - it was the turbo. It has 12 months mot and is fully serviced and very well kept - ( we thought we were buying it so it is our pride and joy)

the finance company have instructed another lease company to try and sign us up to a new conditional agreement. We wont do this. We are only leasing due to being miss sold ( our fault ).

Can we hand the van back fully working repaired and shiney?

we cant part ex it as it does not belong to us.

inmypocketnottheirs

jayne7868 wrote: »

I understand a hire agreement is not a Hire purchase. But what is the differance when covered by cca 1974

A hire agreement is not normally covered by cca1974 this one is.

The agreement 'should list liabilities according to the cca1974 but it does not.

The van a ducato lwb a 57 plate is being repaired - it was the turbo. It has 12 months mot and is fully serviced and very well kept - ( we thought we were buying it so it is our pride and joy)

the finance company have instructed another lease company to try and sign us up to a new conditional agreement. We wont do this. We are only leasing due to being miss sold ( our fault ).

Can we hand the van back fully working repaired and shiney?

we cant part ex it as it does not belong to us.

I think we will need to see the agreement.

If there is no termination clause in there, then there is no option to terminate early.

All kinds of agreements can be subject to CCA1974, not just HP. I recently saw a lease agreement for a Vhip & Pin terminal that was subject to CCA 1974.

On the basis that the agreement is a rental agreement, then you will have signed for a fixed term rental, and then at the end of the term you hand the vehcile back, as you have just hired it for the duration. If you were to keep the vehcile at the end then it would have been Hire Purchase, and you would have had to have the Voluntary Termination clause.

It would also seem that you chose a non maintenance option, so the liability to service and repair is yours.

I really don't think you can claim misselling now.

Sorry to say, but I stand by my original advice of best to get the van repaired, and as it isn't yours (i.e rented) run it until the end of the term.

A final point, what was the manufacturers original warranty?