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Can you get ou of a Hire Purchase Agreement


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Hi

 

I see you know plenty of info on this subject can you help me....

 

I have a hire purchase agreement from Mercedes Benz Finance, I have had the agreement 14 months. The full term is 36 months. They have told me if I want to hand the car back there is a hefty price to pay. I have paid 1/3 of the agreement so far is there any chance of just handing the car back? They have told me that paying this hefty amount is the only option.......

Hope you can help.

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I would imagine they would want the full amount you would have paid if the agreement had run to conclusion, less any residual value of the vehicle. This residual value will of course be their own evaluation. Bear in mind that most vehicles lose as much as half of their purchase value in depreciation over the first year.

Given all this then I would expect there would be a hefty price to pay. Probably much more hefty than you want I suspect.

I really do appreciate all those 'thank you' emails - I'm glad I've been able to help. Apologies if I haven't acknowledged all of them.

You can also ding my gong if you prefer. :)

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Hi

 

I see you know plenty of info on this subject can you help me....

 

I have a hire purchase agreement from Mercedes Benz Finance, I have had the agreement 14 months. The full term is 36 months. They have told me if I want to hand the car back there is a hefty price to pay. I have paid 1/3 of the agreement so far is there any chance of just handing the car back? They have told me that paying this hefty amount is the only option.......

Hope you can help.

 

Once you have paid half of the total amount payable you may hand the car back... i think the revant section of the CCA 1974 is sec 99-100.

An appeaser is one who feeds a crocodile, hoping it will eat him last. <br />

Winston Churchill

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