Hire purchase car

[blueredpurple]

I currently have a car on hire purchase, the contract ends in 2026.

Can any one tell me how it works if i wish to take it to the dealership, end the agreement, return the car, and take out a new contract with a different car?

my current car is a money pit, it has an common engine fault and keeps needing constant repairs.

If you have paid over half of the value of the original contract (including the deposit) you can return the car to the HP company with no impact on your credit score. Only issue is whether you have equity in it - because you would hand it back and get nothing back for it. I did it a few years back because I was in negative equity so it allowed me to start afresh.

Did you post this a few months ago?

the only one who will have the answer is the dealer.

I'm sure I've seen a similar post recently. You need to check your contract for you and your car!!

No I didn’t post this a few months ago. But so what if I had done?
im well aware that I need to check specifics in my contract, I’ve never taken a car back mid way through a contract so o just wondered generally how it works.

Ok if it wasn’t you then search the forum - there was the same thread already so you might get some good info.

no need to get shirty.

As far as I know you can indeed take the car back to the dealership and hand over the keys and walk away with nobody owing anyone any money.

So work out when the half way through point is. Get a valuation of how much you can sell your car for.
And from that work out if you have any equity in it or if it’s better to cut your losses and ditch the car.

I only ever heard of one person doing this (with an unusual make if car from India i forget the name, that wasn’t worth anything as it wasn’t something anyone wanted). She did that and got a different car instead.

Have a google and see. Especially in that Martin money tips guys website. He’s good. Trading standards may also have info. I take it that they can’t do anything about your car being unfit for purpose as youve had it too long?

Get the car valued and get a settlement figure for your finance. If you can get more for the car than you need to pay back, then great. You can part ex is for a new car or sell it and buy another.

if you have negative equity then you’ll either need to wait longer or think about whether you can cover the outstanding balance or add this to your next finance deal.

People saying you can just had the car back, isn’t that PCP not HP? You can end up with excess charges that way and I was advised not to do that with my PCP car unless I had to.

i just find thread police annoying.

anybody can start a thread about anything, it doesn’t matter if someone created a similar thread ages ago.