HP Car return

peteuk

The_Fat_Controller said:

@peteuk, I think you are mistaken, as far as I remember you can terminate and return the car after 50% of the payments have been paid, not halfway through the contract.

The OP has not actually said what is the outstanding or settlement amount, where they are in the contract term and what the WBAC valuation was.

Yep but they tend to be at the same point. 

The_Fat_Controller

@peteuk I stand corrected as this is a real HP case.

@fatbelly if the OP stops paying that would be classed as surrender and not termination and they would come after them for any shortfall.

OP, please read this article and make sure you understand what you are doing.

https://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/#:~:text=Summary-,What is voluntary termination?,not at all) by dealers.

Nearlyold

peteuk said:

The_Fat_Controller said:

@peteuk, I think you are mistaken, as far as I remember you can terminate and return the car after 50% of the payments have been paid, not halfway through the contract.

The OP has not actually said what is the outstanding or settlement amount, where they are in the contract term and what the WBAC valuation was.

Yep but they tend to be at the same point. 

The definitive  point at which you can VT with no further payments due (other than charges for damage beyond fair wear and tear) is when 50% of the TOTAL AMOUNT PAYABLE under the contract has been paid, it should be noted that any deposit and/or part exchange is included in the total amount payable calculation and is thus included in the amount paid towards the 50% VT threshold.

It's not defined as 50% of the monthly payments nor 50% of the term of the agreement. It's 50% of the (cash price of the goods +interest + any fees like set up or option to purchase fees).

Technically in the case of a substantial deposit/ part exchange the borrower could reach the point of VT after just a few monthly payments (though obviously it wouldn't make any sense to actually proceed with a VT). 

fatbelly

You can always do a VT under the consumer credit act and it's usually a better move than just stopping paying and allowing the lender to terminate, as your liability is limited

The factsheet I linked to earlier explains this