RoShamBo

iTrader: (1)

OK - heard this at the weekend, that if you buy a car on hire purchase, once you have paid over half you are quite entitled to hand the car back with no additional penalties. The car must be in reasonable condidtion for age etc. This ONLY applies to HP agreements under £25,000.

Firstly does anyone know if this is correct, and secondly, what about HP agreements over £25,000 ??

Cheers

R.

Coffin Dodger

That's true. No idea about HP over 25k though,

KiwiGTI

Would say it depends on the contract.

Jer

yip did it a good few years ago with an Audi coupe. Racked up 50K in two years and the handed it back. Bought the car for about 12K with 50 thousand on the clock and handed it back after two years. Car must have been worth about 3 grand and I was due 6k on it.
Don't know about over 25k though.

MAC76

It applies to agreements under £25k but not over £25k. £25k and over agreements are bound by a different set of laws.

ScoobyDoo555

Looked into this a while back, and whilst it seems almost too good to be true, (especially if you're in negative equity with your "purchase"), there is a down side. Despite not being officially allowed to do so, you will get kind of black-marked. You will find it a bit harder to get credit.

Unofficially of course

Dan (and no, I don't work in finance)

sti-04!!

What usually happens is that the finance company that your have the car with wont touch you again.

2000TLondon

I would actually think that isn't likely, to be honest. The company will have to show the account as settled on your credit. If they have accepted the car back and everything is above board, they won't be able to add negative information to your file.

ScoobyDoo555

Pretty naive to think that the finance companies don't talk about non-completing customers........

I can only speak from my personal experiences though - they probably don't have an official list though

Dan