HP, how to get out?

[BadgerBadger]

H has our car on HP. How do we get out of it? What do companies do if payments can't be continued?

It's his problem really, the car's HPed to him, but it's to my advantage to sort this out, a.s.a.p. (He wont have the money for a flat until this is sorted out.)

Selling the car will not give nearly enough to cover the HP ammount, nor do they offer any sort of payment plan yet he doesn't have the cash in hand to pay the difference.

amount*

While you are waiting for someone in the know to come along ....

Think he may be liable for the full amount of the hp contract so even if he sells it he has to pay them off. However not sure he can sell it himself if there is outstanding HP. We tried to pay one off early once and there was no advantage to do so.

DP has a motorbike on hp from about 10 years ago - he's still trying to pay it off. He told them he couldn't afford the repayments and they had to let him fill in a means form and then agree to pay what he could per week/month.

Another thing you can do is if you write out a cheque for part of the amount, write on the back his name and account number and 'In full and final settlement'. Make sure you photocopy both sides of the cheque. If they cash the cheque it means they have accepted it as settlement and you won't have to pay any more.

Have you asked for a settlement figure?

Check the agreement - depending if regulated or not and how long it has been running it may be possible to return the vehicle with no futher monies due. In this case however you have paid the installemts for X months and have got nowt to show for it. Does end any ongoing liabilities thou.

Could he raise the settlement figure on a straightforward personal loan with a longer term/hence lower payment?

Found this on Honest John: "If you buy on finance, pay off half the total finance cost (including any deposit you have made or been allowed on a part exchange), then discover that you owe more than the car is worth, you are legally entitled to return it to the finance house and walk away debt-free. This can make straight finance at a sensible APR a much better deal than personal contract purchase which ties you into a fixed contract you can't get out of it."
I don't know if this is any use to you as it means you would be left without a car but could be worth considering.

Snap wordgirl.

Wow! Thanks so much, some of those ideas are well worth looking into.

They have given a settlement figure -

of nearly double the value of the car

im sorry but im sitting here laughing because i thought this was a thread about getting sauce stains out!

I have no advice for you at all but thought i had to post to say how daft i was!