HP Car Finance

babyqueen1066

Hi all, I have a car on HP Finance with Welcome Finance...the car is 13 years old. I have been told I can hand the car back under the "Half Rule" as long as i have paid over half...please can someone advise me? Many thanks in advance xx

Tixy

Your original finance agreement will detail when you can voluntarily terminate the credit agreement and return the car. But it will equate to when half of the capital borrowed has been repaid.

When did you take out the agreement? How long was the original term?

Are you up to date with all repayments? never missed any?

babyqueen1066

Hi the original agreement was taken out in July 2006 paid for a year then due to finance difficulties put on hold for a year then they re-financed my agreement to reduce my payments which took place August 2008. I have never missed a payment and they are up to date now..My Outstanding balance is £3851.67 with 59 payments to make and I have paid to date £3876.89.... hope that makes sense .

Tixy

You need to check your original agreement and if you had a new agreement in August 08 when it was refinanced then you need to check that as well.

How much was the original amount borrowed (the capital amount)?

You say you have never missed a payment, but then it sounds like you made no payments for a year - is that right?

babyqueen1066

My original finance was £3680 with total pay back £6615.16 - My re-finance was £4443.06 with total payback £9884.70 - when i spoke with the finance company to date I have paid £3876.89 and I have £3851.67 outstanding with a settlement of £2685.30....The year break was due to bankruptcy many thanks

Tixy

It sounds like a new agreement then in August 08. Was this definitely secured on the car also? does the mention the ability to voluntarily terminate the agreement?

Have you asked them whether you are able to VT the car? or at what point you will be able to? (e.g. they may be able to say you would be able to VT in a few months).

At a guess, without knowing the APR charged and final fees etc, and assuming the second agreement was a full HP agreement and eligible for VT you may be getting close to the VT point.
(half of 4443.06 is 2221.53, and you have 2685.30 as a settlement figure but that amount will include some settlement interest).

babyqueen1066

Yes the new agreement was in August 08 and yes HP on the car and yes it does have the VT car.
Im not overly happy about speaking with them as they are not helpful at all and say im struck with it
THE APR on my 08 agreement says 13.53%

forgotmyname

If you started a new agreement ion 2008 shouldnt the loan be paid off by now?

How long was the loan / HP over?

6 year old car on HP originally?

Re-financed with new agreements or a payment plan?

babyqueen1066

A new/re-finance was done in August 2008 over 120 months with payments at £65.71. The car is a X reg. Please help as im so confused and feel im stuck xxx

~Beanie~

If your refinance was £4443.06 with total payback £9884.70, then 120 payments of £65.71 is never going to be enough to repay it, that only comes to £7885.20.

Why on earth did you get finance for an old banger over 10 years?

Anyway, ignoring the above, I know you say that you aren't overly happy about speaking to Welcome but I don't think you have any other choice. When does the 2008 agreement say that you can VT the car?

babyqueen1066

I know the amounts don't add up at all that's why it confuses me.

I didn't, I got the car in 2006 .

I have now contact Welcome and they gonna find out the VT on it xx