Withdraw from hire purchase agreement help?

foxpablo

Hi I took out a hire purchase agreement for a car and I'd like to withdraw from the agreement, I'm still within the 'right to withdraw period' of 14 days which would incur virtually no fee (£1.42 per day). I was hoping to pay the finance company with a credit card and then do a 0% balance transfer, however the company say that they won't accept payment from a credit card. But if I have the right to withdraw then surely they should have to accept payment via this method? Any advice would be a appreciated.
Thanks

Gaz83

A company can choose whichever way they want to receive payment. If they don't accept Credit Card (probably because of charges) then you will have to find some other way of paying them.

Even though you're withdrawing from the hire purchase agreement, I assume you've spoken to the garage? As you'll either need to proceed with the sale through alternative means, or pay any costs incurred by the garage in preparing the vehicle for you.

foxpablo

I won't owe the garage anything as I'm keeping the car, when they were explaining the hire purchase agreement to me the right to withdraw was highlighted to me, and that as long as I paid off the finance company there would be no problem. I guess it's my fault for not checking what payment methods they would accept. If it is just a charges issue then I wish they would offer to pass the charge on to me, as I've found out that I am getting some money which would be easier to just pay off a credit card.
Thanks for your reply

~Brock~

They probably have a policy of not accepting larger payments via credit card because people can, and sometimes do, pull a fast one and try and get a 'chargeback' via the card company, claiming that they didn't originally authorise the payment.

If you don't mind paying the fees then just get the balance transfer paid into your own account and then pay the lender via faster payment.

thebritishbloke

So you took out the finance probably to get some deposit contribution etc, and now you want to pay off the finance and keep the car?

Unfortunately some HP lenders won't accept credit cards, and even then sometimes your credit card company will treat it as a cash transaction and charge you interest from day one.

Best thing to do would get an MBNA card and do a super money transfer to your current account to pay off the card, but that's only if you can get a high enough credit limit.

I hope you weren't counting on getting it all on to 0% finance, and have enough money to pay the car off...

foxpablo

My old car broke down and was in need of a new engine, which would have cost more than the car was worth. As I need a car to travel to and from work I had to act quickly, I put £1000 cash down on the car with finance being the only option for the rest bearing in mind the need to get to work. I remembered being told at the point of sale about the right to withdraw.
Yes I can afford the payments but 0% (including the fees) would be a lot cheaper way of doing it.
Balance transfers won't pay money into your account.
As for the mbna option I have a card with nothing on it but limit is not high enough, and unfortunately for me they have recently automatically raised the limit and aren't able to do this again within a 6 month period.
I have applied for a Virgin money card with an even better money transfer deal but ad it's part of mbna I'm assuming that they won't be able to raise the limit either until November by which time the right to withdraw period will be over.
Does anyone know of a none mbna credit card that offers the same type of deal?

thebritishbloke

You do know that with HP deals, you can "withdraw" at any time by paying it off and you won't incur any fees, and you'll get an interest rebate.

BarclayCard sometimes offer money transfers, but only to existing customers and only at random times it seems. I've been a customer for 6 months and only been offered normal BT's, a friend's had a card with them for a month and has already had an offer for a money transfer. Hit and miss really.

foxpablo

I didn't know that about hp, I just assumed that there would be penalties for early repayment.
So if I paid it off in full in November I'd only be charged say 2 months interest and get the rest of the interest paid back?

foxpablo

Just a quick update, problem sorted now, managed to get virgin money card with 29 month 0%,
Thanks for everyone's help