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Cancelling Hire Purchase half way through agreement?

245

Comments

  • Inactive
    Inactive Posts: 14,509 Forumite
    wba31 wrote: »
    The HP company own the vehicle as they have provided the finance to purchase the vehicle from the original garage

    Agreed, the car dealer has been paid by the finance company.
  • birkee
    birkee Posts: 1,933 Forumite
    Inactive wrote: »
    Agreed, the car dealer has been paid by the finance company.

    The point was....you can't hand the vehicle BACK to the finance company, when they didn't have it in the first place. There's no question who owns it until the loan is paid off.
  • Inactive
    Inactive Posts: 14,509 Forumite
    birkee wrote: »
    The point was....you can't hand the vehicle BACK to the finance company, when they didn't have it in the first place. There's no question who owns it until the loan is paid off.

    If the car is going " back " to anyone, it will be the finance company or their agents acting on their behalf.
  • birkee
    birkee Posts: 1,933 Forumite
    Inactive wrote: »
    If the car is going " back " to anyone, it will be the finance company or their agents acting on their behalf.

    It's like trying to knit fog!

    To go back to anyone.....it has to have come from them in the first place.
    The car didn't come FROM the finance company, it came FROM the car dealer.
    It can only be handed over to the finance company, not given BACK to them.
  • Inactive
    Inactive Posts: 14,509 Forumite
    birkee wrote: »
    It's like trying to knit fog!

    To go back to anyone.....it has to have come from them in the first place.
    The car didn't come FROM the finance company, it came FROM the car dealer.
    It can only be handed over to the finance company, not given BACK to them.

    Too many pedant pills.

    :(
  • birkee
    birkee Posts: 1,933 Forumite
    Inactive wrote: »
    Too many pedant pills.

    :(

    Not enough vitamin I.Q.
  • BoGoF
    BoGoF Posts: 7,098 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Birkee, you don't know what you're talking about.

    If you have paid 50% of the finance (not necessarily the same as being halfway through your agreement) you can hand the car back to the finance company and subject to it being in good order that is the end of the matter....seen it, done it.
  • wba31
    wba31 Posts: 2,189 Forumite
    edited 2 March 2011 at 6:25PM
    Birkee, you're right in that you cannot just hand back a wreck and it all be cool, but the OP sounds like he hadn't originally planned to do this, so I imagine the car is well looked after, and the HP company will have a 2 1/2 year car to sell through their agents. As for their losses, all covered in the interest that we all pay on loans/credit cards and the many successful HP agreements that get completed. If people want a cheap lease scheme, the HP schemes with the balloon payment is the best for that (I know the Peugeot Citroen group did a lot) and it meant that instead of the balloon payment at the end of 3 years in their case, people would put the car down as the final payment/deposit for the next car.

    Ending a HP agreement in this way will negatively affect a credit rating, but it's not impossible to get further credit, just not the best deals. I've seen people go bankrupt and start borrowing again as soon as they can (after 1 year) despite the bankruptcy being on the credit report for 6 years. Mortgages is a completely different kettle of fish, go via the right broker and you'd be amazed at what mortgages can be attained with a poor credit report...

    (I stand corrected on credit report - see below)
  • BoGoF
    BoGoF Posts: 7,098 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    @ wba31 - I'd have to take issue with your statement that it will negatively affect your credit rating. It seems one of these urban myths that no one knows the answer to, it certainly has done no harm to my ability to obtain 0% credit card deals etc.

    Although, I have heard it will harm your chances of getting another car on HP as they do not like voluntary terminations
  • wba31
    wba31 Posts: 2,189 Forumite
    BoGoF wrote: »
    @ wba31 - I'd have to take issue with your statement that it will negatively affect your credit rating. It seems one of these urban myths that no one knows the answer to, it certainly has done no harm to my ability to obtain 0% credit card deals etc.

    Although, I have heard it will harm your chances of getting another car on HP as they do not like voluntary terminations

    Thank you for this, i simply knew that it would not destroy your rating. I had no idea on the overall affect on scoring...
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