Hire Purchase worth just handing back?

flashg67

GwylimT wrote: »

The standard agreements have a standard limit, but you can change the limit if you will be going over the standard limit, or if you will be doing much lower mileage you can lower the limit which will then lower your monthly payments.

If you have a car on hire purchase your contract will detail your mileage limit, now some detail the fee for excess mileage, some however don't and simply state that a mileage excess will be charged at the current rate when the car is returned.

100% certain mine doesn't have a limit. Are you thinking of PCP or similar, rather than HP?

GwylimT

flashg67 wrote: »

100% certain mine doesn't have a limit. Are you thinking of PCP or similar, rather than HP?

No, all have a limit, its so they can keep low mileage and get a very good price when the car is sold, or the mileage limit is high and the repayments are also high to cover the cost of a lower sale price.

Cazza

flashg67 wrote: »

100% certain mine doesn't have a limit. Are you thinking of PCP or similar, rather than HP?

I agree, it's PCP deals that have mileage limits, there's no need for them on standard consumer HP agreements. This is because PCPs need a mileage to calculate the final value / lump sum payable which the lender will also use as a guaranteed final value. HP doesn't have the same clause hence no need to calculate mileage. Different rules if it's a B2B sale/financing package though.

eschaton

GwylimT wrote: »

The standard agreements have a standard limit, but you can change the limit if you will be going over the standard limit, or if you will be doing much lower mileage you can lower the limit which will then lower your monthly payments.

If you have a car on hire purchase your contract will detail your mileage limit, now some detail the fee for excess mileage, some however don't and simply state that a mileage excess will be charged at the current rate when the car is returned.

GwylimT wrote: »

No, all have a limit, its so they can keep low mileage and get a very good price when the car is sold, or the mileage limit is high and the repayments are also high to cover the cost of a lower sale price.

Personally - I think you are talking crap.

People on here posting fiction as fact are dangerous.

GwylimT

eschaton wrote: »

Personally - I think you are talking crap.

People on here posting fiction as fact are dangerous.

You could easily use the internet to find it isn't rubbish it is also something anyone should know if they have ever had a car on a finance deal unless they haven't bothered ready the contract. If you just had a quick look at various car sites you will find all supply mileage limits for cars on HP and PCP, PCP's are much easier to change as most people do buy the car in the end, where as in HP there isn't always the option to buy (I know there normally isn't with Ford) and so the mileage limits are lower and far more costly to extend.

SCO

GwylimT wrote: »

You could easily use the internet to find it isn't rubbish it is also something anyone should know if they have ever had a car on a finance deal unless they haven't bothered ready the contract. If you just had a quick look at various car sites you will find all supply mileage limits for cars on HP and PCP, PCP's are much easier to change as most people do buy the car in the end, where as in HP there isn't always the option to buy (I know there normally isn't with Ford) and so the mileage limits are lower and far more costly to extend.

HP does not have milage limits.

You are thinking of PCP.

OddballJamie

Guide for those confused about PCP and HP
http://www.motors.co.uk/cars/guides-and-advice/how-to/pcp-or-hp-which-car-loan-makes-more-sense-for-you

marlot

GwylimT wrote: »

... in HP there isn't always the option to buy (I know there normally isn't with Ford) and so the mileage limits are lower and far more costly to extend.

Eh? It's in the very name - "Hire Purchase". When you've made the last payment you own the car.

GwylimT

SCO wrote: »

HP does not have milage limits.

You are thinking of PCP.

No I'm not, I currently have a Ford on HP and there is a mileage limit of 20K a year, if you look at their site you will see this on the HP information for both personal use and business use where end costs are stated upon the cars return "*Further costs may apply subject to mileage and condition" it also says "you may set your own mileage limit".
When I give the car back in a year I will be charged 6p for every excess mile, its a fiesta, when I had an S-max it was 8p per mile. If I had PCP from the same Ford group I would still be paying 6p per excess mile if I gave the car back after half of the term/half complete payment if I chose not to carry on the term until the car was fully purchased.

HP business deals are far more generous, you can higher mileage limits for a much lower price as clearly HP business deals are a good money maker for many car manufacturers and the excess mileage charges tend to be lower as well. When I had a flat bed the excess was 2p per mile on an estimated 25k+ yearly limit, although in reality 25k+ meant a maximum of 30k unless I had a lease agreement for six years by which time they would have made enough money for mileage not to matter when the vehicle was returned.

On another note, does anyone know how long you have to be a member/how many posts are needed to post a link in a reply?

Cazza

Either you have a very "odd" HP agreement, or you don't have the type of agreement you think you do - TBH what you've described sounds more like Contract Hire to me?

I used to work for a main dealer, which had a number of different manufacturers in group, I sold car finance. None of what you've said matches my experience but I didn't work with Ford.

Ultimately if the OP's paperwork doesn't state a mileage limit, then it won't apply.