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Business & Finance0 min ago
can you hand a hire purchase car back
hi im new here
hoping somebody out there can help us,my partner got a car on finance from a firm called welcome in march last year,we now need a bigger car as the one we got is quite small and i have just had another child so it is no longer big enough for us to travel comfortably or as safely as i would like. now the problem is we know u have to be half way through the contract before you can hand a car back which we are not the contract is over 4years so we wont be half way until march next year,the bit we are really confused over is that when he 1st got the car we were paying �147 a month,then we increased the payments to �160 as we missed a payment so wanted to pay it back then after christmas the payments were increased again to �50 a week(�200 a month)to clear arrears quicker.my partner has been in touch with welcome and has been told his settlement figure which is �2010,so if we continue paying it at this rate we will have payed it off in 10 months,so we are over half way with the payments,so does this mean we are in a position to hand back the car??? or do you actually have to be half way through the contract? Any advice would be greatly apprieciated
hoping somebody out there can help us,my partner got a car on finance from a firm called welcome in march last year,we now need a bigger car as the one we got is quite small and i have just had another child so it is no longer big enough for us to travel comfortably or as safely as i would like. now the problem is we know u have to be half way through the contract before you can hand a car back which we are not the contract is over 4years so we wont be half way until march next year,the bit we are really confused over is that when he 1st got the car we were paying �147 a month,then we increased the payments to �160 as we missed a payment so wanted to pay it back then after christmas the payments were increased again to �50 a week(�200 a month)to clear arrears quicker.my partner has been in touch with welcome and has been told his settlement figure which is �2010,so if we continue paying it at this rate we will have payed it off in 10 months,so we are over half way with the payments,so does this mean we are in a position to hand back the car??? or do you actually have to be half way through the contract? Any advice would be greatly apprieciated
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yeah I'm sure you can do that too! I know a 'muppet' who has gone through about 5 cars in 2 years - pretty sure they r all on HP and he keeps going back to the same dealer and trading it in for something else - claiming he doesn't like it any more.
He must be a car salesmans dream!
We reckon he must have lost �8000 in 2 years just in depreciation!!!
He must be a car salesmans dream!
We reckon he must have lost �8000 in 2 years just in depreciation!!!
hi thanx for that,we have been in touch with welcome and they are now saying we can do that but we also need to pay them �400 to get rid of some of the debt from the old car,i dont really understand why they need that on top when they say they will give us �1000 for our car which would only leave �1010 anyway which isnt really that much,does anybody know where we stand on that?
Some people think Welcome are not the best of firms to deal with. You may find some comments on other websites if you google them. Try not to be taken in by them telling you things - ask for as detailed statement of account for your present agreement. The settlement figure is not necessarily the total you are liable to pay under the agreement - it may be something they have worked out (to their advantage?) as a figure they will accept because the sale of the car would then give thema further return.
You could simply stop paying & tell them to take the car back. But you would then have a debt to them & - if you couldn't pay it off - it would adversely affect your credit record.
You could simply stop paying & tell them to take the car back. But you would then have a debt to them & - if you couldn't pay it off - it would adversely affect your credit record.
The rule which entitles you to return the car is based on half the payments and not half the term of the contract.
If you have a copy of your agreement, there will be a section headed "Termination: Your Rights". This will give you the exact figure you need to have paid in order to be able to hand the car back.
If you haven't paid that much yet, you can still hand the car back if you make a payment to bring you up to that amount.
If you've already paid that much, you aren't entitled to the excess back.
That figure does not include arrears, however. Even if you have already paid half the total amount payable, you still have to clear any arrears in full before you can hand the car back. That may be where the �400 figure has come from.
Do you know how much the car would be worth if you were to sell it privately rather than trading it in? You are able to sell the vehicle and use the proceeds to settle the finance, so if your settlement figure is �2000ish and you can find a buyer willing to pay that amount, you may be able to go down that route to upgrade. If you can get more, you could put the extra cash towards a deposit on the next vehicle, to help lower the monthly repayments.
If you have a copy of your agreement, there will be a section headed "Termination: Your Rights". This will give you the exact figure you need to have paid in order to be able to hand the car back.
If you haven't paid that much yet, you can still hand the car back if you make a payment to bring you up to that amount.
If you've already paid that much, you aren't entitled to the excess back.
That figure does not include arrears, however. Even if you have already paid half the total amount payable, you still have to clear any arrears in full before you can hand the car back. That may be where the �400 figure has come from.
Do you know how much the car would be worth if you were to sell it privately rather than trading it in? You are able to sell the vehicle and use the proceeds to settle the finance, so if your settlement figure is �2000ish and you can find a buyer willing to pay that amount, you may be able to go down that route to upgrade. If you can get more, you could put the extra cash towards a deposit on the next vehicle, to help lower the monthly repayments.
firstly welcome are a sub prime finance company so your options are grately reduced. The settlement figure you have been given is if you settle now, when the financial services authourity were introduced hp changed. Interest charges are charged monthly now not front loaded to try and stop negative equity situations. This means that welcome cannot charge you for the interest for the rest of the agreement if you settle now, the �2010 settlement you have been given will have the rebate of charges taken of it. However if you dont settle the figure will be grately more.
As other people have suggested you can refinance your car however you may be in negative equity which some finance companies wont consider as they will only lend the value of the car you are buying, as it increases the risk of negative equity, and therefore goes against the FSA's codes of responsible lending.
As other people have suggested you can refinance your car however you may be in negative equity which some finance companies wont consider as they will only lend the value of the car you are buying, as it increases the risk of negative equity, and therefore goes against the FSA's codes of responsible lending.
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