Car Hire Purchase Advice

gf20

Hi all hoping somebody can give me some advice.


Essentially my wife took out a hire purchase car 4 years ago in March 2015 and the agreement has now ended so we need to make the full payment to keep the car which we would very much like to do.



Unfortunately, due to her mental health, she wasn't aware the agreement had ended and we've had a letter today from DWF advising that we need to make the full payment upfront or send the car back. We don't have enough money to pay the full fee upfront (around £3400) and we don't have good credit scores to be able to lend enough money to pay this off. On the flipside, we don't really want to send the car back as my wife is a community carer and without a car, she can't work.


Is there any way the DWF will allow us to pay the final fee in installments with keeping the car or is it a lost cause? Thank you to anybody who replies in advance

sourcrates

gf20 wrote: »

Is there any way the DWF will allow us to pay the final fee in installments with keeping the car or is it a lost cause?

Hi,


Thats a question only they can answer truthfully, we can only give you hypothosis on here, why not ring them and find out ?

WhenIam64

We don't have enough money to pay the full fee upfront (around £3400) and we don't have good credit scores to be able to lend enough money to pay this off. On the flipside, we don't really want to send the car back as my wife is a community carer and without a car, she can't work.

It will come as no surprise that there are companies out there that will lend you the balloon payment. As with any form of borrowing, it will pay you to a) shop around and b) check the terms and c) check you can afford the terms.

As SC says, start with the car's "owner"

ndf9876

DWF as in the law firm, DWF? I would check your \ your wife's credit file to see what (if anything) they may have done in terms of defaults etc.

Without wishing to scare you, I believe (and hope I am proven incorrect here) that the owner could come and just take the car away unless you sort it fairly soon.

WhenIam64

As I read it, all contractual payments have been made and there is no default. It seems the OP does not have the balloon payment to allow transfer of ownership.

They could borrow the final payment but that depends on credit worthiness, the value of the car and ability to pay. The second loan would be secured on the car as an asset rather than an unsecured loan which the OP believes he can't get.

Tricky situation which will become more and more common as PCP starts to mature. Something like £60bn is floating around in PCP contracts.