hire purchase agreements

relix

i got a car from a robbing finace company didnt realise it at the time payed the installments for 26 months out of a 48 month agreement have been told by a friend that i can return the goods ie(the car) as i have payed over half of what was asked of me and stop payment trouble is i do remember seeing this on the agreement i signed something about returning the goods after 2 years BUT we have moved house and i cant find the agreement anywhere.....
where do i stand is there any letters i can write (hopefully worded correctly) to find out?
is it in the consumer credit act ect ive tryed looking but i cant find it
your help would be apprieciated

Robert_Sterling_3

It says here

When you use hire purchase to get a car you have the car on hire and do not own it until you have paid all the installments.

Elsewhere at another site it says:-

You may think that you bought the car from the garage.
This is not so.
The garage sold the car to the Finance Company and you hired it from the finance company.  It is not yours until you have made all your payments to the finance company.

If you have paid less than one third the finance company can come round straight away and repossess the car.

If you have paid more than one third they have to get a court order before they can repossess the car.

If you have paid more than half then you can terminate the agreement and give the finance company their car back.

You can read more about it:-

At this useful site.

relix

many thanks robert ill send a letter off straight away telling them to come pick up the car
cheers

Robert_Sterling_3

Now you can relax Relix. Cheers.

relix

hi all just recieved a letter from the finance company stating that i can return the car as i have payed over half of the agreement so thats not a problem  ;D
problem is they say i still owe £1500 summat about when i took out the finance agreement they had to pay up front for gap insurance ect which i had to pay in my agreement ie over 4 yrs so they are still saying i have to pay them this money still WHY ????? ive phoned them up and asked them and all they say is that i still owe them surely i was paying for it with my monthly payments and now i no longer need it why shud i pay

is this right or are they trying to scam me by getting me to pay more money
please help

MarkyMarkD

I don't believe that £1,500 is gap insurance. More likely payment protection insurance.

If you've bought a loan and (foolishly) taken up the rip-off payment protection insurance, they add it to the amount you borrow and you pay it over the term.

If you return the car, you aren't liable for further instalments on the loan itself but effectively the loan for the insurance is a separate matter.

The idea that "you don't need the cover so why should you pay for it" is one of the reasons why it's a bad idea to buy this sort of cover on a personal loan.

But you will have to pay it. Bad luck. Don't buy payment protection insurance next time.

relix

on my agreement it states
clause 14 payment protection insurance
(g) if you end this agreement early in accordance with clause 8 then the payment protection will be cancelled

clause 8 your right to cancel
you may end this agreement in accordance with the statutory notice overleaf ie payed over half of the goods

aewen007

Hi All

This subject is close to my heart. And would appreciate a response Asap.

When you lot speak of the paid more than 50% of the of the car do you mean the value of the car at the time of purchase, the current value of the vehicle or the total amount including interest borrowed from the finance company ???

Thanks

Debt_Free_Chick

Hi All

This subject is close to my heart. And would appreciate  a response Asap.

When you lot speak of the paid more than 50% of the of the car do you mean the value of the car at the time of purchase, the current value of the vehicle or the total amount including interest borrowed from the finance company ???

Thanks

I think you need to read the T&Cs of your own agreement as they can vary.

There's some useful information here

http://www.nationaldebtline.co.uk/england_factsheets/factsheet_16.php3

HTH