Terminating a conditional sale agreement

[Booberrie]

I was wondering if anyone could help...

I'm 15 months into a 60 month conditional sale agreement (not sure if it's classed as a HP agreement) but I want to terminate my agreement early but I'm definitely not half way through my agreement. I'm paying extortionate amounts of interest back ( a £9k car I'm paying back over £17k!!)

It says about terminating my agreement but I would still owe half but would the amounts I've paid have to come off this? And would the half the agreement amount have to be paid in full?

Would be grateful for any advice!

Thanks,

Boo

[R0b]

Re: Terminating a conditional sale agreement

Hello [MENTION=87228]Booberrie[/MENTION],

If you Voluntary Terminate, then you will owe 50% of the total amount payable which will be half of the 17K and you will be expected to pay that in one lump sum. You could offer a repayment plan but it will be unlikely that they will accept that. The only way to reduce the total amount payable is to make an early settlement, that is you pay a lump sum but you get a discount based on the early termination which the interest is reduced. For example if you are only a few months in to the HP Agreement and oyu want to settle early, then you are more likely to pay closer to the 9k than the 19k because the interest will be reduced.

I think unless there is any reason why you can't, you might be better off to continue paying and then VT when you have paid closer to the 50% of the total amount payable.