Termination of HP agreement half way through | Motoring discussion | Back Room Forum

Fri 25 Jan 2008 17:52

Termination of HP agreement half way through - Harry Pearce

I want to terminate my HP agreement half way through the agreement which is my right as I have the paid the required amount. The contract states that as long as the vehicle is in REASONABLE condition then they will take the vehicle back nothing further to pay etc. They want to give the vehicle a full RAC inspection etc, the vehicle is a MG MGF and is 8 years old etc it a rusting subfarme and rusting pipe work. It does have a 11 month mot and a full service history and apart from the above is in (well i think reasonable condition)

Does anyone know where I stand ie if they say its not in reasonable condition because of the rust etc then what?? Any help would greatly appreciated

Edited by Pugugly {P} on 25/01/2008 at 18:06

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Fri 25 Jan 2008 21:24

Termination of HP agreement half way through - scouseford

Way back in the 60's and 70's I worked in the instalment finance business and my recollection is that there was a monetary figure in a hire purchase agreement that was known as the HP price. I think that it was the amount of money borrowed plus the interest charge plus the 'option to purchase fee'. If you had paid at least half that figure then you were free to let the HP company have the vehicle back without any further obligation on your part.

This might not apply now and I would query whether your 'HP Agreement' is, in fact, a hire purchase agreement. It is just as likely to be a personal loan from the company that arranged the finance on your car, in which case a completely different set of circumstances exists. The vehicle is actually irrelevent in this instance.

Much depends on how long the finance agreement has been in force. It may be that you have paid enough to satisfy the loan company and they might be prepared to take the proceeds of the sale of the car in final settlement of the debt.

But I think that you might be in for some bad news. Finance companies want their 'pound of flesh'.

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Fri 25 Jan 2008 22:32

Termination of HP agreement half way through - rtj70

When my wife wanted her Seicento (no comments it's been reliable etc.) she found via word of mouth motorpoint....

They offered a loan and it was at a good rate. But a little later (not made obvious and we cannot have read the small print) it was Hire Purchase! With the same lender (I got a deal) we converted to a normal loan and cheap it was too :-)

But HP existed for car loans back in 2001/2002 and probably do today.

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Fri 25 Jan 2008 23:35

Termination of HP agreement half way through - T Lucas

Make sure your fully comp is paid up and then torch it.Problem solved.

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Sat 26 Jan 2008 00:06

Termination of HP agreement half way through - Wee Willie Winkie

Right, do you want a sensible reply?!

I work in a motor finance business (well, for the next three weeks until I'm made redundant - damn this credit crunch!)

I am *very* surprised that they want to do an inspection - have you had this in writing? We would never request this on a voluntary termination. Don't worry about the rusting subframe etc, it's a known condition of the car and does not reflect the way that you have cared for it. The finance company should only charge for any obvious neglect, ie dents and scratches.

If you want any more information then ask one of the mods for my email address and I can guide you through the mucky world of HP!

DB

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Sat 26 Jan 2008 11:27

Termination of HP agreement half way through - Harry Pearce

thanks for this sorry how do i get hold of your email address? not sure who the mods are sorry for being stupid would really really appricate your help.

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