Finance agreement help please

Tkn14

Hi all.
Searched and couldn't find the answer to this anywhere on the internet so I am in need of help.

Long story short I have just purchased a car that I am going to be using as a private hire taxi. I have signed all my finance documents and have the car. I just was sitting reading through all the small print and it states the car cannot be used for taxi or for hire and reward.

My question is how would they know if I were to continue to do this? Is this normal for finance companies to state on an agreement?

Any help would be much appreciated as I now feel stupid for not reading the agreement closely at the signing stage.


Thanks

Dobbibill

Is it HP or PCP?

Did you tell the retailer you were looking for a 'taxi'?
Who arranged the finance? them or you?

They are probably protecting their assets as they still legally own the car until the final payment is made.

Hire and reward/taxi is always going to result in additional mileage, wear and tear etc.

Gaz83

Tkn14 wrote: »

Hi all.
Searched and couldn't find the answer to this anywhere on the internet so I am in need of help.

Long story short I have just purchased a car that I am going to be using as a private hire taxi. I have signed all my finance documents and have the car. I just was sitting reading through all the small print and it states the car cannot be used for taxi or for hire and reward.

My question is how would they know if I were to continue to do this? Is this normal for finance companies to state on an agreement?

Any help would be much appreciated as I now feel stupid for not reading the agreement closely at the signing stage.


Thanks

It's quite normal for them to state this. Taxis are almost invariably going to have higher mileage, and thus more wear and tear, and thus are going to be worth less than a car of comparable age, model etc..

Tkn14

Thanks for the replies. It is a HP agreement. I am annoyed at myself for not noticing this.

I am thinking about doing it anyway as I am wondering how they would find out? Only way I can think of is if I was in a bump. Do you think it is possible to use without them any the wiser?

dresdendave

Tkn14 wrote: »

I am thinking about doing it anyway as I am wondering how they would find out? Only way I can think of is if I was in a bump. Do you think it is possible to use without them any the wiser?

That is a decision you will have to make for yourself. If you go ahead with your plan and it comes back to bite you, any advice from here will have been totally irrelevant.

Dobbibill

Is there a cooling off period?

Can you use that to negotiate a deal with them?

There are taxi specific finance companies out there like C@bdirect etc you could look at.

megaginge

Tkn14 wrote: »

Thanks for the replies. It is a HP agreement. I am annoyed at myself for not noticing this.

I am thinking about doing it anyway as I am wondering how they would find out? Only way I can think of is if I was in a bump. Do you think it is possible to use without them any the wiser?

Possibly...

Tkn14

I am out with the cooling off period by a week. It's not that I am not taking anyone's advice because I am, it's just hard when I have invested money into something for me now to find this out. I thank everyone for advice, I was just really looking to see if there was anyway they would find out apart from reading this post haha.

dealer_wins

The problem is that if you have an accident, this will come to bite you.

I wouldnt chance it.

foxy-stoat

dealer_wins wrote: »

The problem is that if you have an accident, this will come to bite you.

I wouldnt chance it.

Only if its a total loss, although if your only source of income will be this taxi then I would not risk my livelihood on wonky finance. Do it properly.

SeanG79

What did you say your employment was when you applied for the finance? They would have asked if the finance was in your personal name. Also did you use the dealers finance company?

Ultimately the lender is unlikely to find out and as long as you have the correct insurance even total loss would not lose the lender any money.

The reason lenders don't like funding taxi's is the high mileage and the fact that you have the right to Voluntarily Terminate (VT) the agreement after 50% of the total payable has been repaid. Should you exercise that right then the lender will obviously lose money as the vehicle will be worth less than a standard use vehicle.

The lenders that do finance taxi's, usually insist on a Non Act Application (One not regulated by the Consumer Credit Act), which removes the right to VT.