Options to get rid of a car still with HP on?

dave2784

I currently am in the 3rd year of a 5 year HP agreement. The car in question is a Mini cooper S and is too much to keep running under the current economic climate.

What options are there to get out of the agreement? If I hand the car back does this affect credit rating? Could I arrange another car dealer to settle this to refinance on one of their cars - or is this unheard of?

Any suggestions greatly received

atrixblue.-MFR-.

you cant sell the car with HP on as car isnt yours. it belongs to finince CO.

you may get a dealer who will settle the finance only if you finance one of theirs, handing back will incure you charges and does affect CR.

dave2784

I thought as much, looks like I may just have to stick with it for the rest of the agreement.

Thanks for your reply

daveyjp

Handing back doesn't effect credit rating as handing back is not defaulting on payments, you are simply enacting your consumer rights.

I have never been charged for handing back either. I just dropped the car off at the local auction house and left it with them.

You can sell a car on HP too, but it's messy. You'll need a settlement figure from your HP company. You then need to inform the buyer it is on HP and the buyer then needs to pay the settlement figure to the HP company to get clean title.

Teterow

Hello,
what excactly do you mean by "auction house"?
Reason I ask is, that we have bought a car on HP in November 2010. We are now leaving the country to move to Germany (we don't know if this is for good), but I have a three year working contract there.
The cost of insuring an RHD car through a UK broker is astronomical and almost 3 times as much as what we are paying for insurance now.
So ideally, I'd like to get rid of the car and buy a new one in Germany. So, by moving countries is there a loophole which may allows us to step back from the HP contract? The contract is for 3 years.

atrixblue.-MFR-.

Teterow wrote: »

Hello,
what excactly do you mean by "auction house"?
Reason I ask is, that we have bought a car on HP in November 2010. We are now leaving the country to move to Germany (we don't know if this is for good), but I have a three year working contract there.
The cost of insuring an RHD car through a UK broker is astronomical and almost 3 times as much as what we are paying for insurance now.
So ideally, I'd like to get rid of the car and buy a new one in Germany. So, by moving countries is there a loophole which may allows us to step back from the HP contract? The contract is for 3 years.

TBH i dont where to start on this one but why buy a car if you thought you were leaving the country.

i only see this as above phone get a settlement figure and then sell it.

Teterow

At the time we needed the car for my partner to get work. Now I have been offered the chance to work for a large and well known company abroad.

Sometimes life deals you a hand and you just have to make a decision.
Life is not always that straight forward...

wba31

Teterow wrote: »

At the time we needed the car for my partner to get work. Now I have been offered the chance to work for a large and well known company abroad.

Sometimes life deals you a hand and you just have to make a decision.
Life is not always that straight forward...

do you not know a family member that will use the car/pay the HP until 50% of payments have been made and it can be handed back? or im sure there is a 33% rule...

look through this document, its very good for people with queries about HP agreements...

http://www.nationaldebtline.co.uk/england_wales/pdf/16_hire_purchase_debt.pdf