Escaping HP deal early

[gazzae]

Hi All,

I bought a car last year on a HP deal. (One of those where you can hand it back after a few years.)

Problem being is that due to some very unforseen circumstances I can no longer afford the payments.

What are my options, is there anyway to hand the car back and get out of the deal or is it a matter of selling the car and hoping that what it's sold for covers the finance?

Thanks

[Xaccers]

I'd contact the HP company and see what they value your car at compared with the current debt.
Compare their value with what identical cars in your area are going for privately, if you think you can get more by selling it, try that.

[AndyCambs]

I think that you're not allowed to sell the car until you've paid at least one third of the payments. You need to check your HP agreement really which you signed when you took out the loan.

You might consider speaking to the loan company to ask if they are flexible with the payments? Being upfront with them might help.

[slowcoach]

I was a Sales Manager in the Motor Trade for 15 Years.

Selling a car whilst it is on HP is theft, with Hire Purchase you are just renting the vehicle with an option to purchase at the end of the agreement. At the end of the HP period there is a fee which finally transfers ownership, used to be a Pound but I would presume they have upped that somewhat these days. You need to talk your situation over with your HP company, you should be able to negotiate returning the vehicle to them.

If an item is on Credit Sale it is yours from day one to do with as you wish, a Credit Sale is simply a loan just as if you had walked into your Bank for a loan and then gone out and bought a car with the money.

Most second hand cars are sold on a Credit Sale.