Terminating a Hire Purchase

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berry87

Registered User
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Was just looking for some advice in case i'm missing something about this.

Have a car that was bought on HP, as of this moment around 30% has been paid off. I had a look at the agreement which says that the contract can be terminated by making up 50% of the agreement amount, so the remaining 20%. Are there any things I should be careful about if I wanted to do this?

Also, would this 20% required in a lump sum? Would it make more sense to continue payments up until the 50% mark is reached so I could have use of the car until then as I'd be paying it anyway? Is there any benefit to doing it now instead of waiting?

Any tips would be great, thanks!
 
There is usually a clause that you can terminate the Agreement when you have paid 50% of the Contract. So, you have the option of paying the additonal 20% and giving the car back, or keep the car until the payments
have reached 50%.
Be careful as there appears to be a legal difference between Termination
( if you have paid 50% or more) and voluntary surrender ( which still renders you liable to honour the contract in full until expiry date)

See citizensinformation bureau on the web
 
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