Best/quickest way to end a HP car agreement?!

Araboo27

Hi guys,

I am currently 7 months into a 60 month HP agreement for my car. I pay £296.51 per month I went into so naively and didn't even think about the consequences of being tied into that monthly payment every month for 5 years. Yes I know, completely stupid!! Anyway, I am trying to figure out my best way out of it...Here's what I have come up with so far -

1. No way to effectively 'hand back' the car until the 2.5 year mark when it could be handed back and the debt would be wiped clean.

2. Currently in approx. £2000 worth of negative equity but could swap my current car (a Ford Kuga, 4WD = very expensive running costs) for something more economical, maybe a new Fiesta? Use Ford Options over 2 years for the new car and at the end of the 2 years hand the car back and BUY a cheap car and have no car related debt!

Either way I am looking at 2 years of repayment :-( Lookinf at the above, I reckon my best option is to sway for a more economical car to reduce running costs over this 2 year period. Any opinions? Do you think this is my best option?

Any input would be great, thanks

Araboo27

Anyone....??

PinkPepperPot

It might be worth looking in the motoring section of the forum. I am another regretful HP contract person and found quite a few useful threads over there

Araboo27

Lol, I didn't even know there was a motoring section - can you tell I'm new?! Thank you

patman99

When I ended-up with HP on a car (better apr than any bank loan at the time) I got told about the potential pitfalls from a workmate.
My way out came when My Bank started doing loans at a cheaper rate than the HP. I simply got a Bank loan & paid-off the HP.
At that point, the car ceased to have a loan attached to it & this allowed me the option of selling it if I wanted or need to.