Hire Purchase - Can I you just stop paying and give the car back?

globetrotter2040

Hi I have a sister who has an HP agreement with Vauxhall, she's in year 1 of a 5 year agreement, and is struggling with the repayments. Can she just give the car back to the finance company and the commitment stops?? She made a very un-wise buy with this, consolidating a previous HP agreement (5K) into a new HP agreement on a new car..... some people!!! Eh? What do you think?

blue_haddock

In order to hand the car back she will have had to paid 50% of the agreement so realistically she hasn't got any chance of just handing the car back. Even if she tries to sell it (difficult when on HP as car doesn't belong to her until last payment is made) she will have massive negative equity.

YorkshireBoy

blue_haddock wrote:

In order to hand the car back she will have had to paid 50% of the agreement

Bearing in mind she's "consolidated" her previous cars finance onto this deal, can this "get out" still be invoked by the borrower?

I ask because we don't know the ratio of the debt, ie how much was from the previous car and how much is for the new car?

Therefore, it sounds like its a "debt" that's been financed over 5 years - not the new car.

mummytofour

Can she find out how much the dealer would give her if she hands the car back to them?
As that way the finace will be settled, yes she will get a trade in value, but if it gets her out of this mess its worth a try?

Vxx