HP breach of contract??
Discussion
Hello
currently own a car on HP.
I owe 12040 as a settlement which has 4 years left.
if I sell the car and they give me say 10k. I technically owe 2040 over the 4 years?
I have rung the finance company and they said this is breach of contract. I cant see how. they are getting the money.
I would just be paying some of early and the car is not with me (but ill be paying the remainder)
are they lieing?
currently own a car on HP.
I owe 12040 as a settlement which has 4 years left.
if I sell the car and they give me say 10k. I technically owe 2040 over the 4 years?
I have rung the finance company and they said this is breach of contract. I cant see how. they are getting the money.
I would just be paying some of early and the car is not with me (but ill be paying the remainder)
are they lieing?
Hire purchase is exactly what it says, until you make the final payment, which usually includes an option to purchase fee, the car is not yours, therefore you cannot dispose off it unless you clear all the outstanding finance, most companies are OK with you selling the car and giving them the funds if it clears the outstanding balance.
Edited by berlintaxi on Monday 23 March 15:21
Mirinjawbro said:
Hello
currently own a car on HP.
I owe 12040 as a settlement which has 4 years left.
if I sell the car and they give me say 10k. I technically owe 2040 over the 4 years?
I have rung the finance company and they said this is breach of contract. I cant see how. they are getting the money.
I would just be paying some of early and the car is not with me (but ill be paying the remainder)
are they lieing?
They won't give you 10K, they'll value the car at 10K. You need to settle 2040 to clear the debt, immediately.currently own a car on HP.
I owe 12040 as a settlement which has 4 years left.
if I sell the car and they give me say 10k. I technically owe 2040 over the 4 years?
I have rung the finance company and they said this is breach of contract. I cant see how. they are getting the money.
I would just be paying some of early and the car is not with me (but ill be paying the remainder)
are they lieing?
Mirinjawbro said:
I wasn't sure if I could pay some of early and deduct some off the monthly.
thankyou for the serious answers.
for the losers with the sarcastic comments. stay fat. stay ugly. don't eat too much during your time off its bad for you.
Ask the right question & you won't get answers you think are sarcastic!thankyou for the serious answers.
for the losers with the sarcastic comments. stay fat. stay ugly. don't eat too much during your time off its bad for you.
If you pay some of the finance off early, by say using savings then yes some companies will either A. reschedule the length of the contract or B. reduce the payments. Although B. may need a new contract.
But the HP is on the car NOT you so, sell the car & the whole finance deal disappears & you'll owe what is called a final settlement.
BUT there is a thing called VT or Voluntary Termination which allows you to VT the car if you've paid more than half of the finance deal. I've only ever done one & it cost me £75 for a driver to pick it up & take it to an auction for the finance co. The companies hate this but it doesn't affect your credit history & clears the finance immediately.
Mirinjawbro said:
I wasn't sure if I could pay some of early and deduct some off the monthly.
thankyou for the serious answers.
for the losers with the sarcastic comments. stay fat. stay ugly. don't eat too much during your time off its bad for you.
Are you a personal trainer or something bro?thankyou for the serious answers.
for the losers with the sarcastic comments. stay fat. stay ugly. don't eat too much during your time off its bad for you.
Under HP the car does not belong to you until the final optional payment is made. You can not sell it as it is not yours.
HP contracts have various trigger points after which you can elect to terminate subject to charges but you must consult with the finance company if you want to do this.
The credit is secured against the car. If you were to sell the car and ask to pay the remaining £2.5k off over the remainder of the term, the finance company no longer has an asset backed finance product. It has an unsecured personal loan. Which is VERY different. That’s why the car needs to always form part of the deal.
As said already, common misconception.....on an HP or PCP the car does not belong to you until the very last Payment is made. Under a lease you NEVER own it. It’s just borrowed for the lease term (just like a rented house).
HP contracts have various trigger points after which you can elect to terminate subject to charges but you must consult with the finance company if you want to do this.
The credit is secured against the car. If you were to sell the car and ask to pay the remaining £2.5k off over the remainder of the term, the finance company no longer has an asset backed finance product. It has an unsecured personal loan. Which is VERY different. That’s why the car needs to always form part of the deal.
As said already, common misconception.....on an HP or PCP the car does not belong to you until the very last Payment is made. Under a lease you NEVER own it. It’s just borrowed for the lease term (just like a rented house).
Mirinjawbro said:
I wasn't sure if I could pay some of early and deduct some off the monthly.
thankyou for the serious answers.
for the losers with the sarcastic comments. stay fat. stay ugly. don't eat too much during your time off its bad for you.
Learn how to construct a basic sentence in your time off. thankyou for the serious answers.
for the losers with the sarcastic comments. stay fat. stay ugly. don't eat too much during your time off its bad for you.
Gassing Station | Car Buying | Top of Page | What's New | My Stuff