Terminating Hire Pu...
 

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Terminating Hire Purchase

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Posts: 218
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Topic starter
 

Does anyone have any experience of terminating a vehicle hire purchase agreement early ?


 
Posted : 30/09/2024 3:53 pm
Posts: 5055
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Did it years ago.

It'll be written into your contact - just follow the rules.

And ignore them saying "it may impact your credit rating" - it will, but not negatively.


 
Posted : 30/09/2024 4:13 pm
Tracey and Tracey reacted
Posts: 20561
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Yeah I have done it – I wanted rid of a car and it was more cost effective to hand it back than trade it in – I believe you have to be 50% into the agreement to do it, although that might have been specific to the HP agreement I had entered.


 
Posted : 30/09/2024 4:17 pm
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One would have thought that such details would be documented in the hire purchase agreement you signed.

To the best of my knowledge, terminating PCH early is likely to be expensive.  PCP exists for those who might want to either buy the car at the end of the agreement or return it early, and as such you pay a premium for this.  PCH is priced to offset depreciation, and this is steepest early in the lease agreement.


 
Posted : 30/09/2024 4:27 pm
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I did it 7 days after taking it out to get benefit of the PCP incentive.

Rang up the company, asking for a closing balance and paid of using debit card.


 
Posted : 30/09/2024 4:29 pm
 IHN
Posts: 19694
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Are you getting rid of the space shuttle?

But yeah, it'll be in the contract.


 
Posted : 30/09/2024 4:37 pm
Posts: 218
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Topic starter
 

I'm just waiting for a copy of the contract to remind myself of what I signed up for, but it's always interesting to hear how other people got on.

IHN - Don't need the space shuttle now I've got my van back !


 
Posted : 30/09/2024 4:43 pm
Posts: 1190
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You can terminate the contract but you have to have paid back 50% of the vehicle value. I did it from a PCP, they were a bit pissy but overall it was relatively painless, expect them to be super pedantic on condition & mileage. Apparently they shouldn't be pushing on mileage but a) I wasn't up for the fight and b) I did feel it was fair enough seeing as I was bailing out of contract.


 
Posted : 30/09/2024 7:41 pm
shoko and shoko reacted
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HP - pay off settlement figure and car is yours

PCP - after 50% of the value has been relayed you can do a voluntary termination and effectively walk away. Otherwise it’s get a settlement figure, pay, and the car is yours.


 
Posted : 30/09/2024 8:10 pm
Posts: 326
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Just done it recently with my Motorbike. Had to purchase a new car after accident in January so needed to get rid of bike.

Contacted Moto Novo with a Voluntary Termination template off Google sent recorded. They responded a week later. They organised Crystal Collections to come collect bike.

Make sure you have all service history and go round and take pictures of your vehicle.

They will bill you for any missing service records, scratches and V5 etc.

About two weeks after collection They contacted to say account balance zero and account closed.

You have to have paid 50% before you can do a Voluntary Termination.


 
Posted : 30/09/2024 10:53 pm
 IHN
Posts: 19694
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IHN – Don’t need the space shuttle now I’ve got my van back !

I always knew you were a builder's van kinda guy at heart.


 
Posted : 01/10/2024 10:16 am

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