Ending a HP agreement early

mullet1982

Over a year ago I entered a HP agreement to buy a car borrowing over £12,000 and I am currently making the repayments.
However I am currently looking at the possibility of ending the contract early as it states I can do so in the contract but I think I am right in thinking that I am only able to sell the car once the agreement is ended, thus putting pay to my original idea of selling the car to pay off the remainder of the loan!
I am keen to wipe out the debt I am in so would like to know what people think are the best ways of paying off the loan so I can then sell the car and pay off any credit be it a loan or credit card. Many thanks.

foolishboy

mullet1982 wrote: »

Over a year ago I entered a HP agreement to buy a car borrowing over £12,000 and I am currently making the repayments.
However I am currently looking at the possibility of ending the contract early as it states I can do so in the contract but I think I am right in thinking that I am only able to sell the car once the agreement is ended, thus putting pay to my original idea of selling the car to pay off the remainder of the loan!
I am keen to wipe out the debt I am in so would like to know what people think are the best ways of paying off the loan so I can then sell the car and pay off any credit be it a loan or credit card. Many thanks.

I've known it to work that you can sell the car to a company or individual and they write one cheque to the finance company to cover the outstanding, and one to you for the remainder - should there be any. This is of course assuming that the settlement figure on the HP is less than the value of the car.

FB

CHR15

I would be astounded if only 1 year into the agreement the car would sell for enough to clear the outstanding balance.

If it is HP then you can return the car after the half way point but again, you may not even be at that point.

You cannot sell the car as it doesn't belong to you (you are just hiring it) so any plans you have of offloading the car must be agreed with the finance company first.

System

Hi mullet1982

You are not allowed to sell the car without the express permission of the finance company, as they still own it.

How long is the finance term? You can end an HP agreement and hand the vehicle back once you have paid half of the total amount payable, this figure will be shown on your paperwork.

See the following link for a detailed fact sheet about HP agreements:

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

Hopefully this information may give you an idea of your options.

Regards
UNDERGROUND