Home Forums Chat Forum Terminating Hire Purchase

  • This topic has 10 replies, 9 voices, and was last updated 1 month ago by IHN.
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  • Terminating Hire Purchase
  • marcus
    Free Member

    Does anyone have any experience of terminating a vehicle hire purchase agreement early ?

    1
    intheborders
    Free Member

    Did it years ago.

    It’ll be written into your contact – just follow the rules.

    And ignore them saying “it may impact your credit rating” – it will, but not negatively.

    johndoh
    Free Member

    Yeah I have done it – I wanted rid of a car and it was more cost effective to hand it back than trade it in – I believe you have to be 50% into the agreement to do it, although that might have been specific to the HP agreement I had entered.

    Cougar
    Full Member

    One would have thought that such details would be documented in the hire purchase agreement you signed.

    To the best of my knowledge, terminating PCH early is likely to be expensive.  PCP exists for those who might want to either buy the car at the end of the agreement or return it early, and as such you pay a premium for this.  PCH is priced to offset depreciation, and this is steepest early in the lease agreement.

    andyg1966
    Full Member

    I did it 7 days after taking it out to get benefit of the PCP incentive.

    Rang up the company, asking for a closing balance and paid of using debit card.

    IHN
    Full Member

    Are you getting rid of the space shuttle?

    But yeah, it’ll be in the contract.

    marcus
    Free Member

    I’m just waiting for a copy of the contract to remind myself of what I signed up for, but it’s always interesting to hear how other people got on.

    IHN – Don’t need the space shuttle now I’ve got my van back !

    1
    mrhoppy
    Full Member

    You can terminate the contract but you have to have paid back 50% of the vehicle value. I did it from a PCP, they were a bit pissy but overall it was relatively painless, expect them to be super pedantic on condition & mileage. Apparently they shouldn’t be pushing on mileage but a) I wasn’t up for the fight and b) I did feel it was fair enough seeing as I was bailing out of contract.

    1
    mashr
    Full Member

    HP – pay off settlement figure and car is yours

    PCP – after 50% of the value has been relayed you can do a voluntary termination and effectively walk away. Otherwise it’s get a settlement figure, pay, and the car is yours.

    marcg868
    Free Member

    Just done it recently with my Motorbike. Had to purchase a new car after accident in January so needed to get rid of bike.

    Contacted Moto Novo with a Voluntary Termination template off Google sent recorded. They responded a week later. They organised Crystal Collections to come collect bike.

    Make sure you have all service history and go round and take pictures of your vehicle.

    They will bill you for any missing service records, scratches and V5 etc.

    About two weeks after collection They contacted to say account balance zero and account closed.

    You have to have paid 50% before you can do a Voluntary Termination.

    IHN
    Full Member

    IHN – Don’t need the space shuttle now I’ve got my van back !

    I always knew you were a builder’s van kinda guy at heart.

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