I need to end my Hire purchase agreement


I took out a car on HP agreement in Jan 2009 and I have never missed a payment. Recently I have lost my job and cannot keep up the payments.

I have paid more than 50% of the agreement total so I can voluntarily end the agreement.

The problem is, the HP company say that I have exceeded the milage agreement. This was 10,000 miles per year. I have done about 30000 miles over. They want me to pay 6p +VAT per mile.

I was not aware that there was such a clause. I was never given a full agreement, just an A4 sheet called Pre-contract Information.

I have looked at the information Hand over pack given to me at the time and in it there is a checksheet with all the boxes ticked.
One of the boxes is for the right to return after 30days. However I also found this piece of paper that had not been signed by myself or the garage.

Additionally, the person who signed the check sheet was the salesman and not the person who did the handover.

Is there anyway I can hand the car back and walk away or will I be froced to pay this milage tariff that I was not aware of?

All constructive advice will be very well received.




  • roonaldo
    roonaldo Forumite Posts: 3,417
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 16 October 2011 at 9:44PM
    This is a common clause on car HP, you must remember you dont own the car outright until you have paid off the loan. They dont want you to end the agreement early, hand back a high milleage or nackered car. If the terms and conditions of the agreement state about the milleage then you dont have a leg to stand on unfortunetley, not reading the T&c's and not knowing is not an excuse. You would have signed the credit agreement (CCA) stating you have read and understood the T&C's.

    Did you take PPI with the HP loan? Or it may well be best for you to try and continue payments whilst being out of work. Are you able to sell it privately and get a good price to enable you to pay off the balance? but im not sure if you can do this or not.
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