Cancelling Hire Purchase half way through agreement?

Andreg

bigjl wrote: »

No, the dealer sold it to the finance company, you are not the owner till you have completed the finance agreement and paid the option to purchase fee.

You are not handing it back to an unknown 3rd party, you are giving it back to the owner, and the only holder of the cars legal title.

What about repossessed houses? I dont think they were ever in the possession of the mortgage lender in the first place. So how can they RE-possess them?

Inactive

birkee wrote: »

Not enough vitamin I.Q.

Perhaps you have some to spare, you obviously are not taking yours.

NeverAgain_2

...What about repossessed houses? I dont think they were ever in the possession of the mortgage lender in the first place. So how can they RE-possess them?...

I think ultimately it comes down to the same thing.

The asset - car or house - is the security for the loan.

If the loan's not paid, the lender takes the asset.

birkee

BoGoF wrote: »

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.

'I' don't know what I'm talking about??
Don't you understand the Queens English?

To give the car 'BACK', means 'returning it to the place from where you got it'.....the car dealer.
You don't give it BACK to the finance company, you surrender it to them.

birkee

At last.....some sensible input! Some from people with knowledge and experience of what the situation is.
Particular thanks to Tinks74.
Seeing as houses have also been included, the same situation arises. You can't give BACK, what was never in their (the lender's) possession in the first place. They may OWN the assets by virtue of providing the finance for the purchase, but they never had the house or car in their possession at any time.

notomonkeys

From the Above comments it seems a good analogy that the DVLA also looks at it this way i.e the registered keeper( yourself ) might not be the registered owner (leasing company) I found this out when i was looking at the original Documents i was given when i started my 'lease' and these clearly stated that the owner was the leasing company and if you look at it that way then i am just the 'keeper' of the vehicle-like some sort of portable garage....lolol
I'm not sure if anyone else has had it quite so clearly stated -perhaps i am just an exception.
btw if you've paid the termination figure in your contract then there should be no problems returning the vehicle as the vehicle is still the property of the leasing company through the finance company( which probably leased it from them originally )


wheels within wheels

skiddlydiddly

birkee wrote: »

'I' don't know what I'm talking about??
Don't you understand the Queens English?

To give the car 'BACK', means 'returning it to the place from where you got it'.....the car dealer.
You don't give it BACK to the finance company, you surrender it to them.

You are just trying to cover up the fact you got it wrong in your 1st post by playing with words in an attempt to make others look silly.Its just doing the opposite.Quit while you are behind.
I don't know anything about HP on a car either as I've never took it out but then I'm not trying to give advice on it.

ewens92

when you purchase a vehicle and finance it your are therefore taking out a loan with the finace company to pay your car the finance company then pay the dealership (where you bought the car) the funds for the car your dealing financially are no longer with the dealership as the car belongs to the finance company as they paid for the vehicle. in the terms of your FINANCE AGREEMENT with the FINANCE COMPANY it states that once you have paid halve of the balance of the total amount payable you are entitled to end the agreement on voluntary terms with nothing more to pay unless in exceptions for damages or insurance jobs any of these situations will result in a extra charge at around 2 monthly payment of your vehicle so just to spell it out you do not owe the dealership anything the finance company will sell the car at a reasonable cost and recover the actual cost of the car with the included interest in your payments you dont actually think they will take a loss do you ?? if you know little on or about something and you do not stand by strong honest advice i suggest you dont post as it could cost somebody alot of money or possibly a bus ride home

johnnyj1

this thread has been a great help, so thanks.

My own situation is that i have a 12 plate clio on a 3 year finance agreement (£16k). I really want to opt for voluntary termination after 18 months however at that time the car would have clocked up around 45,000 miles. So with this amount of miles would VT be an option for me, as the value of the car would be less then the 50% of agreement that i had paid, are they really likely to pick up a loss of possibly £3000?????

thanks in advance

Apples2

Sixteen thousand pounds on a Clio?

Reading that almost justifies the necroposting !

I'm baffled how anyone drove 45,000 miles in just one year in a Clio.