Personal Car loan problem?

passatrider

I purchased a new car last summer for my taxi business using GE CAPITAL to finance it. I was under the impression that it was an HP deal as it has been registered with HPI as having a loan secured against it. However, reading the info on their website it's just a personal loan and not HP. The car belongs to me outright..so why have they registered it as hp? Do I legally have the right to sell it?

standupguy

I assume you have had a look at the agreement and it definitely is a loan rather than HP with termination rights etc.

Finance Companies tend to use these types of consumer loan documents for cars particularly where there is a chance that lending the same amount of money on a HP document may result in the hirer, in time, exercising their right to terminate under the half rule and return the car resulting in losses to the Finance Company.

Of course with the mileage taxi's do the last thing they would want is for you to terminate the agreement and return the car.

They register with HPI so that they are informed if you try to sell or px the vehicle as the loan should really be repaid at that time.

They do not have title to the vehicle so they cannot stop you selling if that is what you want to do.

passatrider

I assume you have had a look at the agreement and it definitely is a loan rather than HP with termination rights etc.?

I've gone through it with a fine toothcombe and it says nothing about it being HP. It states that I can terminate the agreement at anytime if I pay a settlement figure. I have checked their website as mentioned and it clearly states that it's a personal loan and that any goods belong to me from the outset.