Voluntary termination Hire purchase

vanessa8795

Hi I am 3 years into a 4 years hp deal.
I want too voluntary terminate today but just wondering what way is best to do so. Does it still count if you call and tell them or does it have too be in writing ?
thanks 

[Deleted User]

Ring them and ask what they want, you'll probably have to sign some stuff anyway as they will check over the car for damage beyond wear and tear (you can see the guide online if you search for it, I don't have a link to hand). Do remember that even if you are 3 years in, you VT at 50% of the total finance package including the balloon at the end.

MalMonroe

I agree that you should call and ask them what they need you to do. There's more info here - Citizens Advice website.https://www.citizensadvice.org.uk/debt-and-money/sample-letters-to-creditors/Ending-a-hire-purchase-or-a-conditional-sale-agreement---letter/

 Obviously if it is going to cost you more to end the agreement early you'll want to continue to the end. I'm not sure that there is any 'balloon payment' at the end of an HP deal tho? 

Anyway, contact them and have a chat. 

Nearlyold

MalMonroe said:

I agree that you should call and ask them what they need you to do. There's more info here - Citizens Advice website.https://www.citizensadvice.org.uk/debt-and-money/sample-letters-to-creditors/Ending-a-hire-purchase-or-a-conditional-sale-agreement---letter/

 Obviously if it is going to cost you more to end the agreement early you'll want to continue to the end. I'm not sure that there is any 'balloon payment' at the end of an HP deal tho? 

Anyway, contact them and have a chat. 

The OP probably has a straightforward HP agreement with no balloon, alternatively she could have an HP based PCP (the majority of PCPs are HP agreements) or HP with a balloon.

macman

If it is a PCP, then unlikely that you are at the 50% VT point yet in month 36 of 48. Which is it?