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    Hire Purchase - Exit Plan Early

    Hi everybody,

    Aside from asking for a settlement figure and paying off the outstanding value, what other ways can a Hire Purchase be terminated early?

    I am aware some dealerships may take a car as a trade in and also agree to settle the finance and roll on the remaining amount on to your next purchase.

    Is it also possible to sell the car privately or back to the lending company?

    Thanks :-)

    6 Comments

    Normally when 50% of the term has been reached or passed.

    I think that you would find it extremely difficult to sell the car privately because the hire purchase liability will appear on an HPI check. Of course, if the buyer doesn't bother to carry out an HPI check they won't find out about it.

    This explains the legal position of the buyer and seller

    check the paperwork you got when you signed it will tell you on it..how much you will have to had paid before you can legally return it..if i remember correctly its usually a third of the overall price.

    Original Poster

    Thanks I'll have to dig through some more paper work to check the terms - certainly paid 1/3 off

    Banned

    RonChew

    I think that you would find it extremely difficult to sell the car … I think that you would find it extremely difficult to sell the car privately because the hire purchase liability will appear on an HPI check. Of course, if the buyer doesn't bother to carry out an HPI check they won't find out about it.This explains the legal position of the buyer and seller



    I know people that when buying a car privately in this manner make the necessary payment to the finance company and only the balance to the seller. I'm unsure of the exact procedure though.
    Edited by: "cchopps" 25th Oct 2016

    You can do a voluntary termination on the agreement once you have paid half the total amount payable on the contract. This figure includes all charges and interest.
    Eg:
    Credit amount: £7,000
    Interest: £1,500
    Less deposit: £1,000
    Total amount payable: £7,500
    Amount before you can VT (50%): £3,750

    It has no detrimental effect on your credit rating. It's you consumer right.
    Edited by: "nordberg" 1st Nov 2016
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