HP agreement termination

Savedotmoney

Hello all,

Could you advise re a HP agreement I have please. I am happy with it but would like to end it earlier than the agreement date to save money and change car. I have a four year agreement with Audi. I'm wondering whether there is a clause which allows you to hand it back after two years or is it after a certain amount of money has been paid etc?

Not sure what other information I need to provide so happy to do so if needed.

Thanks.

TadleyBaggie

Have actually read the documentation you received when you took out the HP agreement?

27col

TadleyBaggie wrote: »

Have actually read the documentation you received when you took out the HP agreement?

No, it doesn't sound as if the OP has.

Savedotmoney

No naively I jumped on the HP agreement wanting the car, I admit that. That's why I'm asking for advice. I have asked the dealer and he states two years but I don't entirely believe him.

R_P_W

What do the terms of the agreement say?

SeanG79

If its a regulated HP agreement, voluntary termination is possible after 50% of the total agreement has been repaid in monetary terms not months (it takes total interest and deposit into consideration)

poppasmurf_bewdley

You need to read your agreement to make sure it is a HP agreement.

If it's with Audi, I wouldn't expect to be able to terminate it and then open a new one with them. You would have to go with another company.

phey708

Hi,

I have just done this recently, and what you need to read on your HP contract (that's if it is HP) is the section headed 'Termination: Your Rights'. This will tell you how much you need to pay before you can hand your vehicle back without any penalties.

To work out how much you have paid, calculate all the monthly payments you have made from your monthly payments inception, however do not include any deposits as they will have already reduced the amount repayable. It is also possible to Voluntary Terminate before the 50% marker (you have a right to terminate at any time), however you will need to meet the shortfall between the amount you have paid and the half way marker.

Also note that the repayments you make also include the APR, but again this would be explained on your agreement (the total amount payable will be on the top of your HP agreement). When you are ready to terminate the vehicle, ring up Audi finance and explain you wish to VT the car, and provided there is no shortfall to me met, then they will usually arrange collection at your home.

Audi themselves may not collect the car, but will probably use another company (most probably BCA) if it goes to an auction house, so this means that they will inspect the vehicle throughout and note down any damages/stains/scratches. Anything that falls out of wear and tear (fair wear and tear guidelines will be posted to you) will mean that you will be liable for the repairs so be prepared for this.

I would recommend that you are there for any vehicle inspections, and if you don't agree with anything noted then you can dispute this (don't sign the report sheet however if you do this!). You will also need all set of keys, a valid MOT cert, TAX disc and service book when you hand the car back, and if any of these are missing, then there will be a penalty charge (£400 for missing Service Book etc.)

Once the car is collected and you have sent off the V5C, then that's pretty much the end of it.