Voluntary Termination - HP Car

greedy86

Good morning,


I have a friend who's looking for advice.

She has a mini one on HP.

She is looking to stop her HP agreement due to unforeseen circumstances.

She has not yet paid 50% but it has been well looked after.

Is it possible for her to Voluntary Terminate her contract?

Or will she have to wait until she has paid 50% of her agreement?

Will terminating it cost a lot of money?

Thank you all in advance.


Kind Regards,

[Deleted User]

She will need to pay 50%.

Caz3121

I would expect she would need to pay the difference up to the 50%
what does her paperwork say?

greedy86

Ah right I see. I'm not sure, it was just a conversation we had. She'll be looking out her contract tonight.


So....it's 50% of the finance? Or 50% of the car...?!


Sorry....I've never dealt with car finance. I always go private.


Many thanks for the reply though.

Caz3121

some information here
http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

MNM2903

Hi,

Ive just been through this. I was almost at the half way point so just had to pay the remainder to make it up. Was pretty straight forward aulthough the car hasnt yet been collected.

Best thing to do is ring your finance company and ask them where you stand with this. Can i ask who its with?

greedy86

Sorry, I have no idea. It was just a quick discussion I had with her.

~Brock~

She can voluntarily terminate at any time, however if she has not yet paid 50% of the total amount payable then she will need to pay the difference between this figure and the amount she has already paid. Any arrears are also payable even if she has already paid over 50%.

Contrary to popular belief, any outstanding sums do not have to be paid immediately upon termination, however the lender can treat these as a statutory debt and pursue accordingly.

The other amount potentially payable is a sum to put right any defects in the vehicle (other than normal wear & tear).

MNM2903

Just tell her to phone the finance company. Most of them do it now but you will have to pay up to 50% of the finance. And also you pay for additional things after the collect and inspect if the car has and damage thats deemed unreasonable, also needs to be roadworthy to drive away i.e Tax, MOT and insurance up to the point when they take it away. Also i was advised to leave enough fuel to get to at least the nearest fueling station and told not to have the petrol light on.