Contract Hire Termination

[arkham]

Hi all, brand new user here. I searched the forums and didn't seem to find anything relating to my question (or if I did, I just wanted a little clarification).

 

I am well over 50% of my way through a contract hire agreement with Arval on an Audi A4. (approx 21 months into a 3 year contract).

 

I am winding up my Sole Trader business and have come to realise that having this car is just going to kill me per month (£420) now that the business isn't paying for it.

 

So my questions are:

 

Do the CCA Sections 99 and 100 of the CCA 1974 apply to a sole trader who entered a contract hire agreement.

 

If not, what's the best case scenario that I can possibly expect to happen if I can afford to terminate early and pay (I can't).

 

Do they really take the car back, auction it and make you pay the difference if it doesn't reach book price?

 

Thanks for reading if you got this far....

[crem]

I am not sure the 50% value paid applies to Contract Hire in the same way that it does to Hire Purchase. First thing to do is read every scrap of the contract document being especially detailed on any section that refers to ending the agreement by you or them.

[blackknight]

The only legal way out of the agreement is to pay 1/2 the outstanding rentals, you will also be charged if you have exceeded the pro rata mileage or if there is any damage on the car.

 

12 x £420 =£5040 so 50% will be £2520, I am assuming thats a vat inclusive figure so you will be able to claim back 50% of the vat in the rental also.

 

Even if you give the car back they will still chase you for this money.

[bargainhunter]

I believe there i no way out of a contract hire agreement as a soe trader or even as a consumer. Try CAB. If you can aafford it, ask the buy back price of the vehicle. or see if you can sell it and get enough money back to pay off more of the agreement and your outlay

[raydetinu]

Agree no way out of the contract, IMO subect to to actualy seeing the contract ( which I would of thought contains a section on penalties if you dont keep up the payments ) You can hand the car back and they will auction it off cheap and then they will ask for any shortfall between what you owe ( missed payments ) and what they sold it for, less their costs for for administration etc.

Nothing to do with the actual value of the car, just the contract conditions that you signed.