Invoking a VT for a hire purchase agreement on a car

[Louise Mills]

I currently have a car on a hire purchase agreement and my circumstances have drasticaly changed meaning that i can no longer afford the monthly payments. I have not yet paid 50% of the outstanding amount due on the vehicle. Am i able to make a one off payment so that i reach the 50% mark and then invoke the voluntary termination? Any help would be very welcomed.

[Kati]

Re: Invoking a VT for a hire purchase agreement on a car

tagging [MENTION=71570]R0b[/MENTION] for assistance xx

[R0b]

Re: Invoking a VT for a hire purchase agreement on a car

I currently have a car on a hire purchase agreement and my circumstances have drasticaly changed meaning that i can no longer afford the monthly payments. I have not yet paid 50% of the outstanding amount due on the vehicle. Am i able to make a one off payment so that i reach the 50% mark and then invoke the voluntary termination? Any help would be very welcomed.

You can terminate at any time, you don't need to pay the full 50% first, though if you want to do that you can do then terminate. Some finance companies charge a small fee for paying off a larger amount than the agreed monthly instalments so be sure to check first.

[Louise Mills]

Re: Invoking a VT for a hire purchase agreement on a car

Hi Rob

Thanks for getting back to me so quickly. If i don't make the payment will the finance company just charge me the outstanding amount (so i reach the 50%) once the car is collected? Also is it correct that if i invoke the VT i do not need to pay the excess mileage? I have gone over quite a bit which by my calculations comes out to be around £1,000 using their excess mileage calculator.

Many thanks
Louise

[R0b]

Re: Invoking a VT for a hire purchase agreement on a car

Yes they should invoice you for the remaining amount, and the car being collected should not be dependent on paying the invoice beforehand.
Lenders will argue excess mileage is recoverable but it is not. You should read the section "Termination: Your Rights" which explains what you are liable for.

[Louise Mills]

Re: Invoking a VT for a hire purchase agreement on a car

Hi Rob

On checking my agreement the wording under termination your rights states:-

"You have the 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 £15,010.02. 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 anymore"

As you can see there is no mention of excess mileage so would this mean that I do not have to make any payments in regards to this?

Thanks again Rob
Louise