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Car HP loan issues


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My dad who is 77 last year 2020 purchased a brand new car from local main dealer we were very shocked he purchased the car as the  car he had was new with 3000 miles on the clock but the salesman confirmed the sale and my dad exchanged  the car without telling any family member, so far the car has only been driven about 1000 miles since the purchase and recently my dad has been advised and told not to drive due to dementia. 

 

We have spoken to the finance company who were not very understanding and in fact said we could return the car and pay the outstanding balance to my mum`s shock, my question is has everyone had similar issues, as it looks like the car will sit on the drive and we still have to pay the car HP repayments.

 

Thanks for any help    

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Due to the amount of time that has passed, it's going to be difficult to get out of the agreement.

 

Over how many months was the HP agreement for?

If your Dad has paid for more than 50% of the value of the contract, you can offer to surrender the vehicle - you need to be very specific about the language you use in a letter to the HP company - plenty of templates and examples on here.

 

The only other angle you have is his health condition.

However, you might find that is going to be more difficult.

If there is a Power of Attorney in effect for your Dad, then that will have an impact. This demonstrates in a single document, that he has a diminished comprehension of his actions.

 

The main thing to do, is to keep everything contained to letters or emails.

Do not interact with these people on the phone - that's a given for all financial interactions.

 

In your next letter/email, set out that you're looking to settle the agreement, and could they make allowances for your Dad's health condition.

They're likely to say no, but it's worth getting their final position on paper.

 

The settlement option might be slightly more preferable as the interest on the remaining term would be removed, so depending on the finance deal, there would be some money to save there.

Once the finance is settled early, you would then be able to sell the car - if that's feasible, to recoup some of the money you've had to lay out against the finance agreement.

 

I'd also recommend giving StepChange, National Debt Line etc a call to see if they've got any extra advice - they will be far more clued up on the legal, and would be able to give you a couple of extra nuggets that could help.

 

I hope you manage to sort it out.

 

--Adam

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you do not offer to surrender the vehicle, at worst, you do a voluntary termination else you'll be liable for the full cost of the HP.

 

quite honestly i'd be writing to the dealership and the finance company briefly explaining what has happened, with ref to him most probably already in the early stages of his now diagnosed medical condition at time of sale. also ref evidence the car has only travelled xx miles since purchase. there are instances of these matters being resolved without the need for further payments in exceptional circumstances.

 

please name the dealership and the hp company too.

 

dx

 

 

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Sorry, I meant to say VT specifically and not surrender. 

 

 

 

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:thumb:

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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