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Voluntary termination of car on HCP which needs repair as it is I drive able!

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Voluntary termination of car on HCP which needs repair as it is I drive able!

edited 30 November -1 at 12:00AM in Loans
6 replies 732 views
Andi71Andi71
3 posts
Forumite
edited 30 November -1 at 12:00AM in Loans
Hi,

I have a car on HCP with Blackhorse which has 6 months remaining to pay. Last summer I had to shell out over £1500 on repairs and as the semi automatic clutch had now gone, I am facing another £1200 in repairs. The clutch has burnt out and I had to be towed by the RAC this morning so the car is currently not drive able!

The car is 9 years old and I’ve paid well over the 50% needed for a voluntary termination but can I do it in the car’s current condition?

I know cars are supposed to be returned in ‘reasonable condition’ but I can’t afford the repair so would rather hand it back, stop paying the finance and save up for a deposit on a new car? Would a clutch failing on a 9 year old car (semi automatic) come under fair wear and tear?

Thank you.

Replies

  • Andi71Andi71
    3 posts
    Forumite
    Title should read undriveable not I drive able!
  • DrEskimoDrEskimo
    969 posts
    Forumite
    500 Posts Second Anniversary
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    Yes it would. It's going to be hard to hide that the clutch is gone to the inspectors when they come to collect it if the car cannot drive.

    Your likely going to have to take further line of credit to pay for the repair and then try to service both the car debt and the new debt to pay for the repair.

    If would strongly suggest you head over to the Debt Free Wannabe forum and post a Statement of Affairs to see where you can cut costs to pay down these debts fast and not rely on finance for any future purchases.
  • Andi71Andi71
    3 posts
    Forumite
    Thanks Dr Eskimo. Obviously I wouldn’t hide the fact the clutch has gone and will tell them when I request a voluntary termination but I wanted to know if I can legally do that? I really don’t want to be shelling out more money on an old car that isn’t worth what’s been spent on it when I include the remaining finance and the repair bill!
  • DrEskimoDrEskimo
    969 posts
    Forumite
    500 Posts Second Anniversary
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    I imagine they would just include the repair as part of the final bill,along with anything else, like damage on the paint or wheels.

    One idea....what is the settlement figure on the finance, and what value to you get on the car if you punch the reg into WBAC with its current mileage? Assuming you fix the clutch of course.
  • edited 17 January at 8:22PM
    fatbellyfatbelly
    14.8K posts
    Forumite
    Part of the Furniture 10,000 Posts Cashback Cashier Car Insurance Carver!
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    edited 17 January at 8:22PM
    Andi71 wrote: »
    Hi,

    I have a car on HCP with Blackhorse which has 6 months remaining to pay. Last summer I had to shell out over £1500 on repairs and as the semi automatic clutch had now gone, I am facing another £1200 in repairs. The clutch has burnt out and I had to be towed by the RAC this morning so the car is currently not drive able!

    The car is 9 years old and I’ve paid well over the 50% needed for a voluntary termination but can I do it in the car’s current condition?

    I know cars are supposed to be returned in ‘reasonable condition’ but I can’t afford the repair so would rather hand it back, stop paying the finance and save up for a deposit on a new car? Would a clutch failing on a 9 year old car (semi automatic) come under fair wear and tear?

    Thank you.

    Yes, under the consumer credit act you have the right to voluntarily terminate the agreement at any time, if this is HP or PCP, and I'm guessing that it is one of these.

    https://www.nationaldebtline.org/EW/factsheets/Pages/hire-purchase-debt/hire-purchase-and-conditional-sale.aspx

    It is unlikely that the finance company will accept that the car is in 'reasonable' condition - they will make a charge for 'damages'
  • Jono111Jono111
    96 posts
    Forumite
    10 Posts First Anniversary
    I imagine the long term cheapest option is to fix the clutch and buy the car when the finance finishes.
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