PCP- Hire purchase advice please

[Lusky]

This one is a bit complicated.

Had a car on a personal contract purchase scheme in 2002 for 3 years. When the 3 years was up had the option of paying a lump sum or re financing the balance. I chose to refinance the balance with the same finance company in Aug 2005.

Now, I know that under a normal hire purchase agreement you can legally give the car back in reasonable condition after half the agreement has expired without any penalties ( although the lender may try to enforce them they can't do much). Because I am now under a new agreement but have paid more than half the car's value to the same lender, would I be able to return it if I wanted to? Any advice would be welcolme. Thanks.

[cheddar]

Hmm, good question. What does it say in your contract?

[Lusky]

Contract just states you are liable for an early settlement figure etc. etc. but this is normal, the finance companies tend not to advertise your legal rights ( why am I not surprised ?!) because they want you to pay the whole lot. I've certainly paid more than half the original purchase price to the lender but under 2 different agreements.

[cheddar]

I would have thought the same law applies, maybe someone can clarify on this for you. LOL!

[Lusky]

Thanks Cheddar. I don't expect any clarification from the finance company ( Capital Bank part of Bank of Scotland ) that's for sure!!

[RyanJ]

Admit to not being an expert, but logically i would be surprised if you could hand the car back. The point you make on the length of term expired on the agreement is correct but it is specfice to the agreement and not necessarily the car value.

 

I guess a lot depends on the term of the new agreement.

[ghaso]

hello,

 

I just stumbled upon your post. The pcp period has expiried now and you have taken on a new contract. So now you have a brand new contract. I know it is with the same company. check the small print to see if you have halfs and thirds. (hp) You can get out of it at the half way mark.

 

Gaz

[BotB]

The answer to your question will be in the contract you signed.If its a HP or conditional sale (i.e. ownership of the car will not pass to you until you have made the final payment) then you could hand it back and pay nothing more after you have paid 50% back and have no arrears. It is a separate contract to the original one though.

 

On the other hand, if your loan agreement is simply that, a loan of whatever amount to purchase the car outright so it is "your" car immediately, early settlement is the only option for getting rid of the loan, sorry.

You will, however, be free to sell or trade in the car immediately as its your property - can't do that with HP.

[Lusky]

Thanks everyone for your comments.

[Lusky]

This topic was closed on 2019-03-08.

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