returning a car on hire purchase

rsooty

Hi all, hope someone can help.
2 years ago me and the wife bought 2 cars on hp agreements which we had no problem affording. Unfortunately, like many others, since then time's have got tough and we are now struggling.
What I want to know is, can I return a car on hp? I owe more than it's worth and would be happier with just 1 car than struggling to pay bills every month.
Many thanks

rsooty

It is on a 5 year finance by the way so can't do the voluntary termination

NeverEnough

You can't just "return" a car because you've hit tough times......if you miss payments and are defaulted the finance company will recover the car from you, via a court order, sell it at auction for next to nothing, and pursue you for the balance owed to them plus all the interest mounting on those defaulted payments.......
If you manage to get 50% of the payments made, THEN you can voluntarily terminate and hand the car back, but it must be in good order with valid MOT -you will be held responsible for any shortcomings and companies do tend to try to load on the "extras", unfortunately. Plus, you will seriously damage your ability to get a car on HP ever again as companies are not keen on people using the "get out halfway" clause.

Sorry its not what you want to hear, but if only it were as easy as "I'll just return the car" half the nation would be doing it and there would be even more financial chaos - the HP Agreement is a binding contract, not something to be ended when you feel like it.

Curr946

Have to agree with NeverEnough, though if you find a "buyer" for the car that are willing to take over the payments im sure the agreement can be transferred.

rsooty

I have had a quick flick through my paperwork and I think I should be able to get to 50% in January. If I apply for voluntary termination before 50% can I pay the difference off? I get a bonus at Christmas and would happily use it to pay this. What do they class as good condition? It's got a small scratch on the back bumper

Ames

You'd be better off struggling through till January, as said above they'll slaughter you with fees and charges as well as expecting you to pay the value if you terminate earlier than 50% of the way through.

nelly12

rsooty wrote: »

I have had a quick flick through my paperwork and I think I should be able to get to 50% in January. If I apply for voluntary termination before 50% can I pay the difference off? I get a bonus at Christmas and would happily use it to pay this. What do they class as good condition? It's got a small scratch on the back bumper

Yes you can top up the payments to get you to the 50% mark and hence hand the car back sooner.

nelly12

Curr946 wrote: »

Have to agree with NeverEnough, though if you find a "buyer" for the car that are willing to take over the payments im sure the agreement can be transferred.

Sorry but this is incorrect, you cannot transfer an HP agreement from person to person.

inmypocketnottheirs

Stick with the VT and get to the 50% stage then return it. It is written into the terms of the agreement.

triffid123

see my reply at the bottom of this thread as i have handed back a car before under this `pay half the contract` clause:

https://forums.moneysavingexpert.com/discussion/comment/48387737#Comment_48387737