Voluntary Termination - HP

paddyposh

Hi all. Lookin to get rid of one of our cars which is on HP. We are past the half way point, and I have used some info on the legal beagle website so far.

Has anyone had experience with this? Ours is through Oodle. General condition of the car is good for its age IMO. Brakes need doing I believe just the pads, if this is likely to come up then I can do them myself prior to handing it in.

Drafted an email / letter to send, if anyone has any advice would be appreciated.

Termination of hire-purchase agreement in accordance with section 99(1) of the
Consumer Credit Act 1974 (“CCA 1974”)

I am writing to inform you that I am exercising my right to terminate the above hire-purchase agreement with immediate effect in accordance with Section 99 of the CCA 1974. Under Section 100(1) of the CCA 1974, my liability is limited to one-half of the total price payable which, according to the terms of this agreement, is £9,447.80. As of today’s date, I have paid £10,387.58 and I am therefore no longer required to make any further payments.

I have also inspected the vehicle, and I am of the opinion that it is in a reasonable condition given its age whilst accounting for fair wear and tear. Photographic evidence has been taken in the event of any future dispute as to the state of the vehicle. The vehicle is available to collect from the above address on giving reasonable notice, otherwise if you prefer to have it delivered to another location, I am willing to consider this provided that you agree to pay my reasonable costs and expenses.

I would appreciate if you could contact me via email at X within the next 14 days to confirm and on number X to discuss the next steps.

Yours faithfully,

Ayr_Rage

What does your contract say about collection of a vehicle?

I don't think they are going to be paying you to deliver it to them.

You'd be much better quoting the terms of your agreement regarding early termination than a general clause of the CCA.

paddyposh

https://forums.moneysavingexpert.com/discussion/comment/82130929#Comment_82130929

No probably not, I wouldn't expect it. Thanks for the reply! I will look at my agreement again for specifics.

It states that when you exercise your termination right, I must return the vehicle to Oodle, which I am happy to do.

I was planning to ring them to discuss how it works anyway but aside from that was looking for some general advice on the wording and if anyone has been through the process

DrEskimo

I take it the cars trade value is less than the finance owing on it currently? I.e. you are not able to get any more than £8,500 trade from WBAC or a dealer nearby (if my maths is correct…).

paddyposh

https://forums.moneysavingexpert.com/discussion/comment/82130960#Comment_82130960

Correct yes it is worth a lot. We got it originally because we had to and credit at the time was poor, so high %

Not the case now and could re-finance and save a lot per month but we really don't use it hardly as I have a work car

DrEskimo

https://forums.moneysavingexpert.com/discussion/comment/82130976#Comment_82130976

it is worth a lot? Or is that a typo?

what sort of money have you been offered? If not done so already it’s worth getting a range of quotes. I found large variation from dealers, local garages and online brokers.

paddyposh

https://forums.moneysavingexpert.com/discussion/comment/82130980#Comment_82130980

Typo yes!! Sorry, it is worth a lot less to trade in (approx 3k)

daveyjp

Go through the termination process which will be in the agreement. When I ended an HP early I had to take the car to the local BCA auction house.

paddyposh

https://forums.moneysavingexpert.com/discussion/comment/82131068#Comment_82131068

How was your process overall? Any comebacks etc on anything