HP company refusing to terminate Car agreement due to Covid 19

Shylo63

Hi. My Daughter has an Audio TT with high repayments. She recently had seizures and has had driving licence revoked. She has made over 50% of the payments and is legally entitled to return car. She contacted the HP company who agreed to the termination and gave a date this week to pick up car. They are now saying that British Car Auctions are not collecting so she needs to keep the car and it needs to be insured. Insurance is astronomical as she doesn’t have a licence now. They have not clarified yet whether they expect her to continue to make payments on the car, which I sincerely hope not as they accepted termination so it’s their car which she would be storing for them. I really not sure what they are doing is legal and it’s causing a lot of stress and financial worry. 

Please does anyone have any advice re this or suggestions of who would be best to ask
many thanks in advance 

silverwhistle

I think there have been similar threads on here already regarding lease cars. Might be worth looking at those before more knowledgeable people find this thread..

Ectophile

If the car is off the road, then you could SORN it and buy "laid up insurance".  That should be cheaper than normal insurance.

neilmcl

^Above. Whilst she shouldn't be making any further monthly payments (keep a close eye on this, might be worth ending the direct debit) she still has to take reasonable car of the vehicle whilst it's in her possession, which would mean keeping it insured in the meantime. If she can get it off the road then do so and SORN it.

ElefantEd

Could she charge them for storing their car?

DoaM

Probably not, as there's been no prior agreement (or even discussion) about this thus there's no contract formed that would allow the OP to take this course of action.

Exemplar

OP - What does the agreement (that was signed and agreed to) state? It really is that simple. If there is a medical condition that needs to be taken into account then that needs to be dealt with after the fact, not before.