higher purchase how does it work

olavbear

i bought a car on higher purchase , amd i allowed to sell it ? as somone told me that it belongs to the bank , but im paying the installments everymonth surley i can sell the car but continue to pay the instalments on the car ?????????


very very confused

rchddap1

I don't know the detail, but I seem to remember being told that if a car is on finance (eg, through a HP scheme) that you can't sell it on unless you clear the finance first. When people buy a car they can get it HPI checked to make sure that there is no outstanding finance on the car when they buy it.

doelani

whoever lent you the money for the car owns it until you pay the last payment. This is where the HIRE part comes in , they ahve paid the dealer for it and they technically are hiring it to you til all payments made then your last payment usually incldes an extra fees to finalise the agreement.

Are you sure it was hire purhcase and not a personal loan? If you got a personal loan from bank to buy car you can sell it.

olavbear

no i think it definitley was hp , i got finance out through the car dealer , im sorry but the bit i dont get it is im paying for the car , so is it not like a loan from the finance company surley im making the payments i can sell it ???

olavbear

no i think it definitley was hp , i got finance out through the car dealer , im sorry but the bit i dont get it is im paying for the car , so is it not like a loan from the finance company surley im making the payments i can sell it ???

grumbler

olavbear wrote:

...surley i can sell the car but continue to pay the instalments on the car ?????????

And what will the finance company do if you sell the car and stop paying?

http://www.bbc.co.uk/watchdog/guides_to/credit/index5.shtml:

HIRE-PURCHASE

Under a hire-purchase agreement you hire the goods unless and until you exercise the option to purchase them at the end of the agreement. This means that, as you do not own the goods, you cannot sell them and must comply with the terms and conditions set out in the hire-purchase agreement.

You bought a car, not a tooth-brash. You signed contract. And you even don't know what you signed for!!! :mad: And you call this 'scam'

rchddap1

You are assuming that the car is yours. In reality it isn't yours until you make the final payment for the car. When you buy a car on HP the 'loan' is essentially 'secured' on the car. Therefore, the finance company won't let you sell the car until the HP is paid off in full. I'm afraid this is just how it works.

Stink_Pod

Hi

My background is in finance. As others have pointed out, the car is subject to a hire purchase agreement, once you pay the final payment plus a nominal fee the hire part is cancelled and you become the owner. This does mean that you cannot sell the vehicle and keep the payments going until the end of the loan. However, you can sell the car at any time, so long as you pay off the outstanding balance at the same time. If this is the route you want to take, then I'll gladly post about what you need to do to keep the HP company happy.

PS: Don't be tempted to sell the car and keep up the payments, if the new owner runs a check through HPI it will show up, finance companies are notified when one of their cars is HPI checked. If they can prove you have sold the car, the full balance of the finance agreement becomes immediately repayable.

burbs_2

olavbear wrote:

no i think it definitley was hp , i got finance out through the car dealer , im sorry but the bit i dont get it is im paying for the car , so is it not like a loan from the finance company surley im making the payments i can sell it ???

How many times do you need the question answered and on how many boards? You cannot sell the car as it is being hired to you (or so you think, as you only think it is on HP) You obviously took a lot of notice when you were signing the "higher puchase" agreement. It is hire purchase not higher purchase.

margaretclare

Like it, Burbs! Like you, I read the same message at least 3 times with slightly different headings, and I wondered if this was a 'troll'.

'Higher' purchase indeed! If only purchases were 'higher' or 'lower'!

Aunty Margaret