Voluntary Termination of HP Agreement With A Balloon Payment

[jwooods4636]

Hi

I understand you can Voluntary Terminate a HP Agreement after 50% of the finance has been paid.

On my finance agreement I also have a balloon payment at the end, do I have to include that in the finance, ie do I have to pay 50% of that as well?

[R0b]

Re: Voluntary Termination of HP Agreement With A Balloon Payment

Hello,

It's already included in the total amount payable. There should be a heading in your contract that says "Termination: Your Rights" and it will tell you the amount required to relieve you of any further instalments. You can easily work it out by multiplying your monthly instalment by the number of months paid to date. If you have surpassed that amount, then you can terminate without further liability, subject to the car being in a reasonable condition.

[Sarahs1605]

Re: Voluntary Termination of HP Agreement With A Balloon Payment

Hi, I did a voluntary termination a few years ago and to be honest it really is a lot easier than it sounds. Just a couple of things to watch out for.. if they can they will ignore you for as long as they can my advice is pay an instalment then send your letter and cancel D/D gives you a month to get them to acknowledge you. I left mine to late, they ignored me(only a week or so) but long enough to try charging me for sending me a letter to tell me they where charging me for my bounced D/D. Every letter they send they charge for.... any chargeable warrantys on the car they'll include that aswell even if it's expired but you still pay for it. I got stung on that one. Hope this helps