We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Cancelling Hire Purchase half way through agreement?
Comments
-
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.0 -
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.0 -
-
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.0 -
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)0 -
@ 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 terminations0 -
@ 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...0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards