Have any of you ever terminated your car hire purchase agreement after repaying at least a third of it?

Question

What happened when you did? Were you glad you did? Did your HP company hit you with any charges. If yes did you pay them? Thanks

Answer 1

I think you have to pay at least half of the agreement in order to terminate it.

First step is to inform them in writing that you would like to end your agreement with them.

They will arrange for the car to be picked up from you at a time and place to suit them, usually a car auction.

A valuer that they chose will come and inspect the car thoroughly.  He will hit you for six with charges.  He will say this is wrong, that is wrong etc and this is what it will cost to put right. even scratches and valeting costs if the car is not clean and polished.

Its his job to get as much income out of you as he can before they agree to take the car back.  You'll agree a figure, (say an extra £400 for example) and your agreement will have to be paid up to date.

You will have to pay this before he will take the car off you.  My advice; beg, borrow or steal to pay it.  After paying you leave the car and documents there and find your own way home.

Higher purchase is the biggest rip off in the country.   the car is worth nothing in 2yrs and you owe thousands on it.

e.g. you buy a car for 6 grand, the garage paid about 4k for it but then add on thier profit mark up and vat.  The finance company loans you 6k plus interest and charges, say around 8k total owing on a car thats true worth is only 4k.

2yrs later the cars true value has dropped to around 18-1900 quid.....

And you still owe six grand!!!!

HP is a rip off, even if you pay it off over the full term you still need a new car at the end of it.  They hope then you'll do it all again...... with them.