Cancelling Hire Purchase

nickkent529

Hi,

I'm not sure if this is in the right place but I'm looking to cancel my hire purchase with Peugeot. It is a just add fuel scheme. Here are a few details:

Total amount of credit: £8883.80
The total amount you will have to pay: £10669.36
Duration: 37 months
35 payments: £171.01
1 payment of £3868.00 payable after the 35 payments
1 payment of £316.01 (one month after the date of this agreement)
Deposit: £500 as previous car trade in
Direct debit payments per month: £235.00
Agreement started April 2014

I'm just looking for some advice as to how to go about ending my agreement?

Thank you!

mparter

Check your agreement, it'll tell you how you can end it early. You may be able to hand the car back after paying a % of the agreement, usually 50% I think. But best to check the Ts & Cs of your agreement.

molerat

Your agreement will have the 50% figure on it. You can terminate the agreement at any time but have to pay any outstanding amount up to that figure.

nickkent529

The termination amount is £5334.68.

Would i work out 26 months * £235.00
or
26 months * £171.01

That's the confusing part.

molerat

I assume the £235 is including extras such as insurance, roadside assistance etc so the actual car payment £171.01 is the figure to use plus add the deposit you paid to the total.

So it looks like you are about £388 short of the half way mark. You can hand it back now and pay the difference or wait another 2-3 months. Be aware though that some of the add ons may be annual contracts and need terminating separately which may be at additional cost.

edit: The £316.01 payment probably needs factoring in as well.