Hire Purchase Car - Help Needed

jonesMUFCforever

Have you tried to sell the car - if so how much can you realistically get for it?
If there is a shortfall can you make up the difference?

sjb2016

When I moved to China for a few years I still had to pay my student loans (I'm not from around here), so I enlisted the help of my mother to deposit money in my bank account back home (sent via Western Union) every couple of months. Then I just made the payments using internet banking. A bit of a faff indeed, and far from ideal, but if you're serious about repaying the debt, it's an option. Now what you physically do with the car itself, that's another question...

Nebulous2

You're jumping the gun here and assuming there is a problem without knowing. You need to check the paperwork to see how they calculate it and ask for a settlement figure.

If it is a mainstream lender I would be very surprised if they try to claim the full amount of interest.

Lioness_Twinkletoes

sandmanblue wrote: »

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!!

I just love that you are making it sounds like they are being unreasonable!

SeanG79

If the finance is HP or conditional sale or a loan in your personal name, you get an interest rebate so would not need to pay as if you had run the agreement to the end. The agreement will be regulated by the consumer credit act and the lender can only charge ±2 months additional interest for early settlement.

Call the lender and request a settlement figure (NOT and outstanding balance). Without knowing your interest rate but looking roughly at your monthly payments vs the capital borrowed of £3,700, I would estimate the settlement figure would be in the region of £3,680.00.

Apples2

sandmanblue wrote: »

, damn 2nd hand car getting in the way of my dreams..... stressed!!

If you can't meet the requirements can't you simply leave the car with family, take up your dream job and simply carry on paying the £186 per month until you get near the half way point where you can VT it?

There must be someone at home who could benefit.

sandmanblue

Lioness_Twinkletoes wrote: »

I just love that you are making it sounds like they are being unreasonable!

I never said they were being unreasonable i just didn't have a clue where i stood with the whole situation.... i suggest if you have no valid point or advice then you go crawl back into the hole you came from.

as for you other guys who responded thank you for your input - much appreciated!

almillar

If it really is Hire Purchase you can settle early if you like. Goto the dealer or phone the finance company to ask how much it will be to settle - as has been said above, you won't be paying interest on the monthly payments you're yet to make. With that number, you then ask the dealership you bought it from how much they will give you to take it back. Make sure it's nice and clean etc. You should then have a few hudred pounds to find, instead of a few grand. If the dealer you bought from gives you a bad number, try other garages.
On a negotiation note - if you tell them you're moving to Oz, they've got you by the, um, you know, so better not to mention that maybe...

k3lvc

sandmanblue wrote: »

I never said they were being unreasonable i just didn't have a clue where i stood with the whole situation.... i suggest if you have no valid point or advice then you go crawl back into the hole you came from.

So given you've started throwing the insults already presumably you have a finance agreement - if so go and get it and read it - it'll tell you exactly what you need to do.

Good luck with any sympathy if you respond to the finance company in the way you've responded here

National_Debtline

Hello there,

If the agreement is hire-purchase you have two options should you wish to give back the car.

1) Arrange to hand the vehicle back and allow the finance firm sell it. You will then be liable for any shortfall of the whole amount of the finance agreement.

2) Exercise your right to voluntarily terminate under Section 99 of the Consumer Credit Act 1974. You can do this at any time so long as you have not defaulted on the agreement. This means that you will be legally responsible for paying up to 50% of the total finance amount. The finance firm has the car back. The amount they get for the car does not matter.

You can read more within our hire purchase fact sheet: https://www.nationaldebtline.org/EW/factsheets/Pages/16%20EW%20Hire%20purchase%20and%20conditional%20sale/Default.aspx

Best wishes,

David @ NDL.