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Car bought on Hire Purchase

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ooooomikeooooo

Mikkel Beck

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Car bought on Hire Purchase

PostFri Aug 12, 2016 12:37 am

Just wondering if anyone has any experience of Hire Purchase arrangements for used cars?

I bought a car in January from Arnold Clark on Hire Purchase (£6k Kia Rio 60 months at £130). I have spotted a good deal on a lease through work's lease scheme but I can't go for it if I still have my current car.

Does anyone know if there is a way I can return my car and end my HP deal or am I stuck with it? I remember the salesman saying I can hand it back and they'd have it off me at any time but I'm thinking that may only be if I'm trading it in for something else.

I am also aware that any HP deal includes an option to return the car and end the deal once you have paid half the payments but that's still 2 years away.

Cheers
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terminaljunkie

Bernie Slaven

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Re: Car bought on Hire Purchase

PostFri Aug 12, 2016 9:31 am

I think you may be stuffed until 50% through...this is from MoneySavingExpert

Paid off half the debt? You can return the car & walk away

Known as a voluntary termination, there's a little-known clause in the Consumer Credit Act which allows you to get out of an HP agreement early. Provided you’ve repaid at least half the total amount owed, you can terminate the agreement and return the car to the finance company.

This is a handy clause in an HP contract if you find:

You no longer need the car.
You want to cut costs.
You can’t afford repayments.
You can get a similar car for a lower cost than you would by making the remaining payments.
If you decide to do this, the car should be in good condition when you hand it back. If not, you’ll have to pay for any outstanding repair work that needs doing.

If you're not yet halfway through the payments, you’ll need to pay the amount outstanding to reach halfway before you can get out of the agreement.

Important! If you decide to end the agreement early, make sure to get everything in writing and keep a copy so nobody can claim you have defaulted on your payments.
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ooooomikeooooo

Mikkel Beck

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Re: Car bought on Hire Purchase

PostFri Aug 12, 2016 10:18 am

Thanks. I read that already. Looks like I'm gonna have to wait it out.

Shame because I could've had a brand new BMW 330e, the new plug in hybrid, for £308 per month lease including maintenance and insurance. Would've been a big upgrade on my 1 litre Kia Rio!
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tomr182

Fabrizio Ravanelli

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Re: Car bought on Hire Purchase

PostFri Aug 12, 2016 11:14 am

wow where did you find that deal on the BMW?
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ooooomikeooooo

Mikkel Beck

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Re: Car bought on Hire Purchase

PostFri Aug 12, 2016 3:28 pm

Work's lease scheme via salary sacrifice. NHS fleet solutions. That's at 18,000 miles per year as well. Is a great deal, that's why I'm so upset to have to let it go!
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tomr182

Fabrizio Ravanelli

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Re: Car bought on Hire Purchase

PostFri Aug 12, 2016 5:35 pm

my goodness, that is an unbelievable deal!

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