Money *back* from Car Hire Purchase???

Laconic

So this is really weird and I'm not entirely sure what to make of it. In 2008, I bought a car on hire purchase through Blackhorse, paying £500 deposit and financing the balance (total amount £4200), with the agreement to pay it back over a period of 3 years.

A month ago, I voluntarily terminated the contract and sent the car off for auction and confirmed that I owed them no money.

The DVLA wrote to me today to confirm that I am no longer the registered keeper of the vehicle.

Today, I've got a refund cheque for £464.65 from Blackhorse. What gives? I keep looking at it and shaking my head -- surely we're just quits, no?

Any enlightenment I can get I will appreciate.

t508

if you VT a car on HP, the car goes to auction, if they get more for it then the agreement balance then you are entitled to get the difference back.

Although the funds for the vehicle are not normally relevant as they do not normally clear the outstanding account balance they sometimes do.

Example - BMW worth 10K handed back as agreement reached half. if the op had paid a large deposit there might only be 5k left. the finance company dont get to keep any overpayment.

Laconic

I did not know that -- I thought that in the case of an excess, the company kept that. Ah well, now I'm truly happy! Just what the ISA needs!

kenh11

Laconic wrote: »

I did not know that -- I thought that in the case of an excess, the company kept that. Ah well, now I'm truly happy! Just what the ISA needs!

Lucky so and so!

Usually the cars sell for next to nothing at auction and you rarely get something back.

Congratulations :beer:

lawrie28

Might be worth checking how this looks on your credit file, see if you can get Black Horse to show the agreement as fully settled rathe than VT'd.

standupguy

I think you will find the refund relates to monthly payments taken after the date on the vt letter, if not, then for some other reason.

There is no requirement to give any refund after sale proceeds as the car belongs to the Finance company and the agreement was terminated

Laconic

standupguy wrote: »

I think you will find the refund relates to monthly payments taken after the date on the vt letter, if not, then for some other reason.

There is no requirement to give any refund after sale proceeds as the car belongs to the Finance company and the agreement was terminated

It's well in excess of the monthly payments at £128, nor is it a multiple thereof and I made no payments after the date the car was taken. No, I didn't expect anything either as that was my interpretation, but I'll call up to double-check just for peace of mind.

kenh11

Laconic wrote: »

It's well in excess of the monthly payments at £128, nor is it a multiple thereof and I made no payments after the date the car was taken. No, I didn't expect anything either as that was my interpretation, but I'll call up to double-check just for peace of mind.

Let us know what the results of the phone call are when you get chance Laconic, definitely an interesting outcome.

Laconic

kenh11 wrote: »

Let us know what the results of the phone call are when you get chance Laconic, definitely an interesting outcome.

Yes, just called. My car has been sold, my account is zero, all is squared away and I have money back. Very unusual but so amazing!