Car Hire Purchase Problems

If you want to hand back the vehicle:

The consequences of handing back the vehicle depend on how long you have been making repayments to the Hire Purchase Company.

If you have paid more than 50% of the total repayments:

You can hand the vehicle back and that is the end of the matter. Be wary as some contracts may vary.

If you have paid less than 50% of the total repayments:

You will have to pay an additional charge if you hand the vehicle back. This is normally the difference between the payments already made and half the original price of the goods.

There may be further charges as well so either contact the Hire Purchase Company, The Citizens Advice Bureau or read your Hire Purchase agreement.

Selling a vehicle under Hire Purchase

Do not sell a car that you have bought under Hire Purchase unless you have finished making all of the payments. Under a Hire Purchase agreement the vehicle does not belong to you until the end of the arrangement. It could be illegal to sell a vehicle in this way.

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