Van on contract hire

x.nukke.x

Hi all ,

About 18 months ago my husband agreed to take a van on contract hire for 4 years (rather stupidly for a large sum of money per month - it was before we were married but I flipped when he told me he'd signed the contract!).

His business has long since dried up and there were a few months where he was unable to pay the hire. We've just got our letter saying that the balance (around £1500) needs to be paid by the 9th October or they will repossess the van and attempt to retrieve the £1500 by other means.

We were wondering if there is any way of terminating the contract? I had heard that when he pays over half the van's purchase price he can voluntarily terminate but we're a good bit away from that yet.

Any help would be very gratefully accepted!

Herzlos

What's the total cost of lending and the monthly repayments? For something with 30 (2.5 years) months remaining on the term, a balance of £1500 seems pretty low; that's ~£50 worth of equity a month.

If he's paid back over half of the total cost (purchase + interest), then he can just hand it back.

Are you able to take out a separate loan for the balance and pay it off at a better rate?

x.nukke.x

Sorry I meant they were looking to retrieve the cost of the missed payments (£1500)!

Monthly payments should be £333 per month but recently he's been paying £483 to cover a few months that he missed when his business closed. He missed three of these £483 payments.

The total cost of the van is £20,000 (it's a big Transporter) which he has the option to purchase after 4 years.

My husband is currently working for a company through a recruitment agency and is still on probation. He has another six weeks before he gets moved onto the company payroll so I assume he will not be able to get a loan elsewhere. As for me, I haven't got a great credit score - not through anything negative, but purely because I've never had any credit in my name before.

Thank you for your reply!

OddballJamie

Worth putting out any 'man with van' ads to help cover the finance?

Of course tax and insurance would need to be sorted.

neilmcl

Speak to the finance co. If you don't need the van then let them take it and then you can try and come to an arrangement to pay back the debt.