Advice needed i bought a car 2 years ago on h.p & i no longer want the car but owe more on the h.p what now???

Answer 1

If you have a 'regulated' finance agreement you may find you are covered by the 'halves & thirds' rule. This means that if your initial deposit & all your payments made to date add up to half or more than half of the original total invoice price of the vehicle you have the right to volutarily terminate the agreement i.e return the car to the finance house.

You will need to write to the finance company & inform them that this is your intention, they then have around 14 days to advise you of where to take the car.

Word of warning - they may want the vehicle inspected & will charge if the mileage is over any agreed amount or if the vehicle is in poor condition (accident damage etc)

If you are covered by haves & thirds, the figure you will need to have paid will be on the finance documents.

Excercising your right to terminate should in no way affect your credit rating / score as it is part of the agreement the finance house has with you.

If you are not covered by haves & thirds i'm afraid you have no option but to pay or refinance the negative equity.

Answer 2

The only way you can sell the car before the HP period has ended, is to pay off the balance in full.

If you aint got the cash, the only option is a loan, but it will cost you, because you will be paying the interest on the HP as well as the interest on the loan.

You got comprehensive insurance? Maybe the car could get stolen and burned out one day (nudge nudge, wink wink).

Answer 3

if you look at your finance agreement you will find you can return the car after you have paid around half the repayments