Hire Purchase -ADVICE REQUIRED

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  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    Emispring18 wrote: »
    It’s exceptional to me! And my payment history.
    AGAIN- you have no idea what people are going through- skip your judgement and just give useful advice.

    I was recommended to use this board for advice and you’re all a bunch of judgemental *******.


    That's very nice and from a newbie too.
    Could a family member pay the finance Co and then you pay the family an amount per month and when your back working you increase the payments.
  • ess0two
    ess0two Posts: 3,606 Forumite
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    14k in total for a car worth 7k, no wonder the OP is pi££ed off.
    Official MR B fan club,dont go............................
  • dawyldthing
    dawyldthing Posts: 3,438 Forumite
    Is there no where else you can cut back on so you can keep the car? As it looks like it’s the only way you will keep it. It’s like everything - you agree to it so have to keep to it. You must have had a high interest loan though or over a long term as you’ve paid a heck of a lot in interest
    :T:T :beer: :beer::beer::beer: to the lil one :) :beer::beer::beer:
  • bobbymotors
    bobbymotors Posts: 746 Forumite
    OP if you are in arrears (which you are, having reduced payments for a while) then I'm not sure you can just VT the car.
  • k3lvc
    k3lvc Posts: 4,174 Forumite
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    Emispring18 wrote: »
    Do most of you work for finance companies?

    Thank you to the people who offered advice -To the people who tell me I HAVE NO RIGHTS? Of course I have bloody rights, it says in my agreement that if I own over 50 % of the vehicle they are not legally allowed to action repossession and an alternative agreement should be sought, HOWEVER, when you try to speak with the finance company about this, they just say I need to hand the vehicle back and pay the remaining balance. THAT IS NOT AN ALTERNATIVE AGREEMENT ITS REPOSESSION WITH MY PERMISSION!

    And Gaz, not looking for magic sort number 3, just asking for some advice. Don’t be so sarcastic and rude, and extremely presumptious! I’m not the kind of person to take credit without paying for it. I’m 40 years old, have worked for everything I have. GET OFF YOUR HIGH HORSES.

    You don’t know what people are going through, try being a bit kinder in your tone and less presumptious that people are trying to scam and not pay for things.

    It's not high horses though and if you respond in this way to the finance company they're not going to play ball with you

    so in summary

    1) you took out HP on an overpriced car with an inflated finance rate through a sub-prime finance house

    2) They've allowed you some flex when you claimed 'exceptional circumstances

    3) You've subsequently defaulted on this and expect a dodgy finance company to cut you some slack and extend your non-payment ad-infintum

    You can forget any VT options at this stage and if I were you I'd be parking the car somewhere other than your home address for the foreseeable. I can't imagine such a company is going to play by the rules which is likely to leave you with no car, it being sold an a knock down price (irrespective of what you claim it's 'worth') and the remaining debt passed to you to pay off
  • Cornucopia
    Cornucopia Posts: 16,155 Forumite
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    edited 30 December 2018 at 11:28PM
    I'm not sure any of this is actually helping the OP, although most of the advice in the thread looks sound to me.

    To boil it down:-

    Option 1: Do as the Company wants, return the car and accept the debt. Before doing this, double-check their valuation with e.g. Webuyanycar.

    Option 2: Pay off the currently outstanding finance using another source of funds. This could reschedule the debt making it cheaper.

    Option 3: Obtain specialist advice as to how plausible Voluntary Termination might be. This sounds financially most sensible, though not if the car is still required. If there are arrears, then the company may not allow it.

    Option 4: Approach another Dealer with your situation and see if there is anything they can do in terms of taking the vehicle's debt over to a new deal.
  • DrEskimo
    DrEskimo Posts: 2,347 Forumite
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    I would seek clarification from the finance about your rights to VT, as that is your best option IMO.

    Trying to refinance the £6000 at a lower rate is just throwing good money after bad given the car is only worth £1,800. Much better to just buy something cheap with cash, or better yet make do without a car while you sort things out.

    I can’t see how the arrears affects your rights to VT, so long as you have made 50% of the total amount payable, and the contract is still active?

    I guess it ultimately depends on the finance company and their T&Cs though...
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    edited 30 December 2018 at 11:39PM
    Emispring18 wrote: »
    Do most of you work for finance companies?

    Thank you to the people who offered advice -To the people who tell me I HAVE NO RIGHTS? Of course I have bloody rights, it says in my agreement that if I own over 50 % of the vehicle they are not legally allowed to action repossession and an alternative agreement should be sought, HOWEVER, when you try to speak with the finance company about this, they just say I need to hand the vehicle back and pay the remaining balance. THAT IS NOT AN ALTERNATIVE AGREEMENT ITS REPOSESSION WITH MY PERMISSION!

    And Gaz, not looking for magic sort number 3, just asking for some advice. Don’t be so sarcastic and rude, and extremely presumptious! I’m not the kind of person to take credit without paying for it. I’m 40 years old, have worked for everything I have. GET OFF YOUR HIGH HORSES.

    You don’t know what people are going through, try being a bit kinder in your tone and less presumptious that people are trying to scam and not pay for things.

    You don't own 50% of anything because that's not how HP works. You won't own the car until the final payment has been made.

    The good news is that since you appear to have paid over a third of the finance the lender will need a court order before repossessing your car. You could VT the vehicle as long as the creditor has not issued a default notice. Those are your rights as a consumer.

    The lender has no legal obligation to offer you reduced payments. They've done it once as a goodwill gesture already and now you're asking again. I'm sure your circumstances do seem exceptional to you but they aren't really. Illness, redundancy, these could happen to anyone at any time which is why you should have some kind of back up like an emergency fund and/or income protection insurance. If you don't then you're at the mercy of your creditors or facing insolvency. That's the reality of it.

    https://www.stepchange.org/debt-info/hire-purchase-debts.aspx
  • Lolly18
    Lolly18 Posts: 64 Forumite
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    If you’ve paid over 50% of the total amount borrowed it is your legal rite to voluntary terminate the agreement. You do not have to sign anything you simply give the car back and that’s the end of the agreement. They will not be very helpful with this so expect a up hill battle.

    I hope you get everything sorted and please update on your situation

    Good luck!

    Lolly
  • Blackbeard_of_Perranporth
    Blackbeard_of_Perranporth Posts: 7,605 Forumite
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    Question.

    What is the settlement amount and can you get necklace for this?

    Otherwise, I’m afraid, your hooked.
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