Hire Purchase Car - Help Needed

sandmanblue

I purchased a car on hire purchase from First Response Finance 4 months ago but have just been offered my dream job in Australia. The car was £3900 and I put down a £200 deposit and have since made 4x payments of £182. I would like to do the responsible thing and hand the car back, shake hands and be done with it but will this just end up backfiring on me? Im having to scrape together money for flights etc so paying them a lump is not possible for me and I really cant turn down this job offer.


Any advice on where I stand legally or if anybody has been in a similar position with First Response would be much appreciated.

jonesMUFCforever

You can't do that.
You can sell the car PROVIDED you pay off the outstanding debt.


To hand back the car you need to have paid back at least 50% of the loan.

sandmanblue

would they want the full amount of what would have been payed over the years of the loan or just what is outstanding at present?

DCFC79

I believe you would need to repay whats left to repay.

sandmanblue

DCFC79 wrote: »

I believe you would need to repay whats left to repay.

I don't have my statement to hand but for arguments sake lets say the total amount to be paid over 3 years was £7000 once interest has accumulated over that period would I need to pay all of that (minus the payments made since the agreement was taken) or would I just have to pay for the interest accumulated over the 4 months or so since I've had the vehicle?

DCFC79

sandmanblue wrote: »

I don't have my statement to hand but for arguments sake lets say the total amount to be paid over 3 years was £7000 once interest has accumulated over that period would I need to pay all of that (minus the payments made since the agreement was taken) or would I just have to pay for the interest accumulated over the 4 months or so since I've had the vehicle?

As I said I believe (from reading the forums ) you would pay whats left to pay off eg if the amount is £7k left to pay then thats what you will pay, early repayment charges might be added to that but it should be listed in your documents.

Buzby

The way it should work is stated in your agreement - it should clearly point out your obligations and allow you to work out what they will expect from you. They will only want the money - the car is an irrelevance in the main, you need their permission to sell the car and once given, what you received for the car will come off what you are due to repay them.

Once the car cost is repaid, there will probably be a shortfall - how which will depend on what the car is sold for, and this will be the final payment to close the account.

sandmanblue

by the sound of this they won't give me much option other than to leave the car behind for them to come re-possess and just let them try and chase me for the money. This sucks as I genuinely had every intention of fulfilling my obligations and this opportunity has come entirely out of the blue but there is absolutely no chance I'd be able to pay off the £7000 when I only borrowed £3700 4 months back.


I'd probably fetch around £3200 for the car as it is when you factor in the £728 I've paid since taking the loan plus I could at a push pay another £500 you'd think that they might just accept the £728 difference for the 4 months instead they and I will both end up in a worse position by them effectively forcing me to do a runner!!

chanz4

ask a dealer to buy it

Clive_Woody

Not sure but I have a feeling that I heard that UK and Australia have a reciprocal agreement for debt recovery so it may not be that hard for them to chase you if you try and run from your debts.

sandmanblue

Clive_Woody wrote: »

Not sure but I have a feeling that I heard that UK and Australia have a reciprocal agreement for debt recovery so it may not be that hard for them to chase you if you try and run from your debts.

that's the thing I don't want to run I want to get something sorted but sounds as though they are going to make it difficult to do that, damn 2nd hand car getting in the way of my dreams..... stressed!!