A Question About HP Cars

[Jimmy Joe]

A friend of mine was asking me for some advice tonight about how to get out of a hire purchase deal on a jeep he got about 9 months ago.  His work has slackened off drastically and he says he can't afford to pay the repayments anymore.  It's not an area that I would be familiar with.

Has anyone on here had any experience with this sort of thing.  Could he just tell them to take the car back?  Is there any other way around the situation?

[comethekingdom]

Put a match to it!

[Jimmy Joe]

Put a match to it!

That might be one way around it 

[Candyman]

He could possibly give the car back, but the showroom would work out the depreciation from its original price and pay that to him/finance company. He would then have to pay the remaining balance. His main problem being will the dealer be willing to take the yoke back as it may be hard to sell again. Especially with it being a 4x4....

[Jimmy Joe]

I think he's already tried to give it back but they've told him he has to see out his contract (4 years 3 months). 

[EC Unique]

If he were to sell it private would the selling price clear the finance or is he in 'negative equity'  Did he pay a cash deposit along with the finance?

[Lazer]

first thing to do is ask the finance company for a settlement quote

[bingobus]

Put a match to it!

Actually told a funny one today from a client. He owns one man in the construction sector who had a Range Rover, bought new on HP in 2008. Couldn't pay, got it torched. Tought the insurance would cover it and they'd all be happy, bar Mr Insurance company.

They called him to offices in Dublin to complete the paperwork. Once there he was presented with 5 similar models to his and asked to take his pick.     

Apparently, this was happening too often and the insurance companies asked them to address the issue and they now pass on repossessed models.

[girt_giggler]

the finance company will play serious hard ball in any situation like this.  The only way i'm led to believe you can 'hand it back' is when you are halfway through your agreement...

[Gnevin]

Don't know about their cars but their sauce is lovely on a Shepard's Pie

[spiritof91and94]

There usually is a clause that gives a time when a buy out or hand back can be made. I think half way through the contract.
Read the small print - happening all over the place at the minute.

[Jimmy Joe]

He traded his own car in for the new one but I think If he sold it he'd still be in the red.

There usually is a clause that gives a time when a buy out or hand back can be made. I think half way through the contract.
Read the small print - happening all over the place at the minute.

I would say the Finance company won't budge an inch on it.  I'm sure the last thing they want is another car to sell

[Double Cross]

Another fine example of todays buy now pay later society 

He needs to get a settlement figure from the finance company. Then he should put the car into a good auction just to see what it will make in the current market. If the two figures are in any way close he should take it and try and make up any difference himself. If the two figures are way out then he may have no other option than to hand it back.
Insurance companies are thoroughly investigating any claims, so be careful 

[An Gaeilgoir]

I saw first hand the legacy of the HP fiasco last weekend in Wilsons Motor auctions on the Nass road. there was a 2008 commercial Volkswagen Touraeg with 4000km on the clock, leather interior loads of extras. It was valued at  22k and was sold for 9k by a finance house trying to get its money back. Every cloud really does have a silver lining!

[Double Cross]

The owner will still owe 13k plus costs?