I dont want my car on HP anymore...

[C&D]

Hello

 

Not sure whether anyone will be able to help, I have a car on finance through Welcome Car Finance at the moment and I pay £242 per month for it (its only a Mondeo!). I have only had it for 15 months but the payments are now just too high each month as we want to save for a mortgage.

 

I know that there comes a point in the contract whereby (apparantly!) you can give the car back and owe no money which I believe it around halfway through (meaning I have almost a year to go by the time I have added a couple of payments I have missed).. Is there any other way I can get out of the agreement before the end / this date?

 

I owe loads more on the car than its worth so selling it isnt really going to be an option and if they reduce the payments each month, it just drags it out over longer and means I pay loads more interest.

 

I think its really unfair that these companies can charge the interest they do, I was stupid by going to them and getting a car but I had no other option as I have a bad credit record and I didnt know any better!

 

Any advice would be gratefully received!

[Guest louis wu]

Generally speaking, once you have paid back 50% of the loan, you can just give it back to the hp company. You will need to look at your original agreement, however, just to check that no special conditions have been attatched to the loan.

 

Is there any chance you could ge a loan to replace the current one, it may work out that your repayments would become significantly cheaper.

 

louis

[tomterm8]

i would call them up, and ask if there is any rebate on early repayment, and whether you can return the car.

 

If you do return the car, make sure it isn't better for you to refinance etc, as louis says.

[C&D]

Thanks. I have asked for a copy of my agreement and a statement of what I have paid / still owe etc and once I have this I will ask them about whether I can hand it back.

 

I am unable to get another loan as my credit rating is too bad..

 

My OH is a taxi driver so we are also looking at whether it would be more cost effective for him to use my car as a taxi rather than renting one at £220 pw!

 

I will keep you updated but if anyone has any other advice / ideas I'm open to sugestions! (SP)

 

Thanks

 

C

[Guest louis wu]

My OH is a taxi driver so we are also looking at whether it would be more cost effective for him to use my car as a taxi rather than renting one at £220 pw!

 

Those figures are very close, could be a way out for you.

 

As tom says, if/when you next ring them, ask if there is an early settlement figure. As to bad credit score, join the club. There are some loans out there though, have a look on moneysupermarket.com. It may not be feasable, but if you are stuck with the car, then an ordinary loan, even at a higher APR%, may just still save you some money each month

 

louis

[lord120]

Hi there we are in the process off getting a new car on hp before we hand the old one back as I have heard they make it hard for you to get a new car in the future we have paid just over 50% of the car off but the car as 143,000 miles now from when we purchased the car new august 06 will it be a problem handing it back???

[buzby]

Mileage is only an issue with Contract Hire, which usually has mileage limitations then penalties if mileage targets are exceeded. If a straight HP deal, there won't be a problem - but as you say, it's resale value will be minimul.

[cash 4 cars]

if you wanna cash for your car i buy it on hp

[labrat]

would not recommend following the above post if you look at the other posts he has made he states "i run a scrapyard in peterbrough and i take car with hp they cannot do anything about it"

 

this is missleading they can still charge you for any outstanding money, would NOT recomend selling or scrapping car

 

also reported to site administrators

[Rooster-UK]

Cash 4 cars.

 

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