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Hi there
I took out a hire purchase car finance agreement with Raphael's bank (with CarFinance 247 acting as intermediary) back in March 2016 for the total amount payable £11,649.20. To date, 38 monthly payments of £193.32 have been made totalling £7,346.16.
I'm now in a position where I no longer use or need the car and the payments plus insurance are becoming unaffordable, after reviewing my contract I noticed the following clause regarding voluntary termination:
"You have a right to end this agreement. To do so, you should write to the person you make your payments to. They will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £5,824.60. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more."
I'm very aware of the nature of finance companies and how they like to make things difficult, so I'm looking for some guidance on how to start this process and hopefully not encounter any additional charges or headaches.
The part that concerns me is the vagueness of 'reasonable care', the car naturally has minor cosmetic wear given that it is 11 years old. It is recently MOT'd and has no major dents to exterior or wear to the interior. There is quite a substantial scuff/scratch to the left alloy, and I'm wondering if I'm best replacing this just in case.
I can't see anything in the contract regarding mileage limits, but wasn't sure if they have a tendency of trying their luck with this.
Furthermore, Raphael's sold their existing loan accounts to Paragon Bank a couple years back so I wasn't sure if this affected any of my contract terms.
Any advice is much appreciated, and thanks in advance.
I took out a hire purchase car finance agreement with Raphael's bank (with CarFinance 247 acting as intermediary) back in March 2016 for the total amount payable £11,649.20. To date, 38 monthly payments of £193.32 have been made totalling £7,346.16.
I'm now in a position where I no longer use or need the car and the payments plus insurance are becoming unaffordable, after reviewing my contract I noticed the following clause regarding voluntary termination:
"You have a right to end this agreement. To do so, you should write to the person you make your payments to. They will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £5,824.60. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more."
I'm very aware of the nature of finance companies and how they like to make things difficult, so I'm looking for some guidance on how to start this process and hopefully not encounter any additional charges or headaches.
The part that concerns me is the vagueness of 'reasonable care', the car naturally has minor cosmetic wear given that it is 11 years old. It is recently MOT'd and has no major dents to exterior or wear to the interior. There is quite a substantial scuff/scratch to the left alloy, and I'm wondering if I'm best replacing this just in case.
I can't see anything in the contract regarding mileage limits, but wasn't sure if they have a tendency of trying their luck with this.
Furthermore, Raphael's sold their existing loan accounts to Paragon Bank a couple years back so I wasn't sure if this affected any of my contract terms.
Any advice is much appreciated, and thanks in advance.
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