Returning car on HP

Anothernewstart

Not sure I'm on the right form, sorry

My husband has a car that was taken out on HP, the price was 18,000 we used car as deposit of 9,000 and we paid monthly payment of approx £280.
Unfortunately husband was made redundant after having car for 4 months so claimed on PPI for 12 months.
Husband then didn't get back into work by the time the 12 months were up so we got into arrears with it.
We did negotiate with the finance company and have paid £150 per month since approx August 2010.
Now it is not financially possible for us to keep the car due to increased work travelling distance, fuel and maintenance costs. It also has an engine warning light just come on that we can't afford to get fixed.

Am I correct in thinking we can contact the finance company and give the car back?
Do we have to give a minimum days notice?

Any advice gratefully received

ANS

BOBS

Check your HP agreement - it should say the amount you have to have repaid to hand it back- usually half of your payments.

Anothernewstart

BOBS wrote: »

Check your HP agreement - it should say the amount you have to have repaid to hand it back- usually half of your payments.

Does this include the car used as deposit as this was half the cost of the car we now have?

BOBS

not sure. Our agreement gives a figure ..... hv u yours to check ?

k3lvc

Anothernewstart wrote: »

It also has an engine warning light just come on that we can't afford to get fixed.

Not sure whether BVRLA guidelines apply to HP Voluntary Terminations in terms of the condition http://www.bvrla.co.uk/Advice_and_Guidance/Fair_wear_and_tear_standards.aspx

If they do I'm not convinced they'll accept it back in this state - either get it fixed or expect them to send a bill for it to be fixed

malkyh

You can't hand back a broken car and expect them to accept it. I'd think you would have to have it repaired, or they will bill you for the repair.

Anothernewstart

malkyh wrote: »

You can't hand back a broken car and expect them to accept it. I'd think you would have to have it repaired, or they will bill you for the repair.

I realise they will charge for getting it fixed but believe we can make an offer to pay this monthly at a small amount as it would be classed as a non priority debt.
We do not have any spare funds to repair the car. If we repair we wouldn't be able to meet monthly repayment and could go down the repossession route which we'd rather avoid.

Looking at the modified agreement it says we need to have paid £11,117.30 to terminate but it doesn't say if the car we used as deposit is included. The original hp agreement shows

Total cash price £17995
Advance payment (Car) £8500

So does that mean we needed to pay £2617 in monthly payments to have met the 50%

poppasmurf_bewdley

You can normally hand the car back once you have paid 50% of the total sale price, including interest. Your HP agreement will state the amount if you are unsure.

However, the handback is guaranteed only if you have stuck to the agreement, ie paid all the instalments on time and in full. If you have not, then the company is within its rights to refuse to accept a hand back as the contract has been broken by you.

They will not accept a car back which is faulty.

You will have to speak to the company to see if they are willing to accept the car back.

SeanG79

VT's, you can hand back the vehicle after 50% of the total vehicle price plus charges have been paid, however when you have late payments, you have broken contract and not all lenders will simply accept the VT. You also have to return the vehicle in a condition relative to age and mileage, (an engine warning would not meet this). If you dont meet the conditions the lender does not have to accept the VT.

bris

18k was it a new car? It may still be under warranty to get the engine management light fixed.
Doesn't help the VT though, sorry, if you haven't kept to the original agreement they will not accept a VT.