Hire Purchase Agreement - Breach of contract

[BigDog78]

Dear all,

In 2008 I purchased a Nissan X - Trail via a Hire Purchase Agreement.

In late 2009 I started to encounter problems with the diseal particulate filter (DPF) Initially the dealership addressed the problem and for a couple of months there were no further issues. However, over the course of the next 12 months the car was returned to the dealership for a total of 8 times! Ranging from 3 days to 4 weeks.

I have challenged Nisaan UK and the finance company and on the last occassion had the car inspected by Nissan UK technicians. previously i was informed it was the way I was driving the car. i.e. not fast enough or for a long enough journey.

The technician report highlights that the error codes on the Electronic Control Unit were manually wiped by the technical teams meaning that the filter did not respond correctly resulting in the persistent failure of the engine management system. The car was therefore carrying a fault for a 13 month period of the 36 month agreement. The agreement ends in April 2011.

I feel this is a clear breach of contract due to the fault caused by the technicians at the dealership. On average the fault occurred every 3 months.

For this reason I feel I should pursue a full or partial refund due to the time/effort/cost and inconvenience involved.

If you have any advice this would be most appreciated.

[seduraed]

Re: Hire Purchase Agreement - Breach of contract

I'm not sure of the rules regarding HP they are different from normal consumer finance. However check your HP agreement very very carefully but you might be able to exercise your walk away rights.
The Following need to apply
1) You need to have paid half the value of the loan for the goods (calculate thisseparately as you can fall foul of this if you took PPI gap or similar insurance)
2) The account needs tobe completely up to date no missedpayments not late payments
3) You need to writeto the lender stating you wish to terminate the agreement under the relavent section
4) The goods need to be i good condition allowing for fairwear and tear. This is the one they will try and catch you on so a report from a different nissan dealer in writing saying that the goods are in good condition or age and only show signs of fair wear and tear.
5) ensure that you have arranged in writing where to return the goods to
6) remind the lender that they have to update your account as closed with no outstanding balance they are not allowed to give you bad reults on a credit report for exercising your right under he agreement

They may wriggle but check carefully and you should be able to get shot of the car with no detriment to you credit rating however you dont then have a vehicle for px.

[seduraed]

Re: Hire Purchase Agreement - Breach of contract

This is a link to the traders guide to goodsandservices 2005 http://www.berr.gov.uk/files/file25486.pdf i dontthing things have changed materially since then