Returning a car on HP

mallymclane

Hi,

(Apologies if this is the wrong part of the forum)

We have a car that we plan to return under the clause in the contract (is this a standard clause?) that says we can do so 2.5years into the agreement without penalty.

Under this clause it also says 'if the car has been looked after' - which is a very vague term! The finance company are also very vague when you ring to clarify what they mean - has anyone experience of doing this and what this clause might mean? e.g. can we get away with a few little dents etc?

Thanks!

inmypocketnottheirs

This is a somewhat grey area. You will also find that there will be a mark against your credit file saying you terminated the agreement early.

mallymclane

inmypocketnottheirs wrote: »

This is a somewhat grey area. You will also find that there will be a mark against your credit file saying you terminated the agreement early.

really? because the finance company is saying there won't be....

hrm :-(

MonkeySaving?

inmypocketnottheirs wrote: »

This is a somewhat grey area. You will also find that there will be a mark against your credit file saying you terminated the agreement early.

Incorrect, it gets marked on your credit file as "settled"...
When they say that the car can be handed back if it's been looked after properly then it refers to servicing records. For the majority of HP agreements it will need to have been serviced according to the dealers service requirements and usually service receipts from the dealer will have to be provided. You'll be fine with a few dings in the door although i would probably get it valeted before you have their inspection team round!

mallymclane

what does settled mean in terms of getting credit tho? is it a good thing or a bad thing or a medium thing?

MonkeySaving?

mallymclane wrote: »

what does settled mean in terms of getting credit tho? is it a good thing or a bad thing or a medium thing?

It's the same as when you make a final payment on a credit card, and close the account. Makes little difference.

quidsin

I handed a car back a couple of years in the same mannor, all the guy who collected wanted as far as I can remember was the cars documents. It had the service history stamped in the log book and they never asked for receipts. I took photos of the car before it was taken just in case any sudden dents or marks appeared!!!

It took weeks thought for them to collect the car, in the end I had to send them a letter giving them a date for which they had to collect the car or it would be left uninsured on the highway. They soon come to get the car.

cazziebo

When I handed my car back (same situation, and it says settled on my credit report) I was to take it to an auction place. I handed the keys over to the security guy and that was it - no inspection, no mileage taken etc. Wouldn't rely on that on every case though!

nomoneytoday

Depends on the number and depth of the damage.

If you have a couple of tcut-able scratches that is fine, but crash type dents aren't.. Basically, fair wear and tear is the test.