Early termination of HP loan - is it worth it?

clarebear007 · 13 September 2011 at 12:25PM

I'm just asking as I've read up on threads where quite a few people have had so many problems when terminating their agreement early.

I've read through our agreement and it says that as long as we pay off £x amount, paid any overdue payments, and kept the car in reasonable condition, we could terminate the agreement early.

So we've done all that. But how simple is it really? I'm guessing we'll have some kind of charge to cancel the agreement early, but is that it, unless they have reason for us to pay towards the condition of the car? I'm just worried that if we decided to go through with it, that it will give us more of a headache than if we just stuck with it for over a year of the agreement left to go...

Any advice much appreciated

standupguy · 13 September 2011 at 12:47PM

The usual reason for voluntary termination is that the settlement figure on the finance is a lot more that the car is worth?

Why do you want terminate the agreement if only one year left?

The car may well be worth a lot more than the current settlement figure and if that is the case why throw away equity you have built up?

Have you got a settlement figure and do you know the approximate value of the car?

clarebear007 · 13 September 2011 at 4:00PM

Hi, we basically really hate our car. It's constantly needing something done to it. When it had it's MOT and service done last, it costs £1k to get it done, and it broke down again at the beginning of the week for the same problem it had last year, and there are lots of other problems with it too, so we were just looking into our options really, as we just want to get rid of it. But I don't know what the approx value for it is now.