Terminate HP agreement at 50% paid

floatindolphin · 4 Dec 2023 at 16:50

Hi,

Does anyone have any experince of terminating a HP aggreement once at the 50% paid mark? I'm considering it as I just don't use my car enough, I have a JDM MPV that I use more.

Plus the 640D insurance has gone up to £1000 and the Alphard £500

I spoke to Motonovo to get a figure that I need to pay to get over 50% and all she did was go on about putting me through to the financial help line to discuss it and how it would affect my credit score if I cancel.

I've seen there's template letters that can be sent. Is it just a case of fill one out, send it then wait for them to come and collect the car?

thanks

Diagro · 4 Dec 2023 at 17:00

I doubt it's that easy?

Is the car worth the same as you have left to pay? If not, you may be incurring some additional costs.

floatindolphin · 4 Dec 2023 at 17:02

It says it in the contract, pay 50% then you can terminate. I'm just after some info on how straight forward they do or don't make it

dlockers · 4 Dec 2023 at 17:03

MSE is your place.

It's 50% of the total value not 50% of time, from what I recall. It should be a case of sending a letter and then the finance company arrange collection.

Diagro · 4 Dec 2023 at 17:09

Voluntary termination of a PCP or HP contract | Car... | Page 2 of 2

Voluntary termination (VT) of a PCP or HP is your legal consumer right, although car finance companies don’t really want you to know about it. The Car Expert explains how VT works and what you need to know about terminating your car finance agreement.

www.thecarexpert.co.uk

50% of the finance agreement. Including interest and fees. Ensure you have reached that point.

No it won't effect your credit. They are trying to scare you into not doing it. As they clearly dislike VT.

That website tells you lots.

Haggisman · 4 Dec 2023 at 17:33

How much is the car worth? I sold my Zoe 18 months into a 5 year HP and walked away with just over £1k in my pocket after settling the finance.

floatindolphin · 4 Dec 2023 at 18:32

I looked on auto trader and they seem to be up for a couple of grand more. I can’t be doing with trying to sell and having a load of time wasters

Haggisman · 4 Dec 2023 at 19:27

floatindolphin said:
I looked on auto trader and they seem to be up for a couple of grand more. I can’t be doing with trying to sell and having a load of time wasters

Worth a try with Motorway - that's what I did with mine, did a quick check to see if it was worth it and their valuation was in the right ballpark, so I listed it for the settlement figure as a minimum, and it ended up getting bid a bit higher

Ryan-3 · 5 Dec 2023 at 13:01

I did this about five years ago with Blackhorse. I got in contact with them at the 50% point, they arranged for me to drop it off at a BCA location, signed a few bits of paperwork and that was it.

A few weeks later it was all sorted with me no longer registered keeper, finance sorted and had sent me a cheque saying how they owed me a few hundred quid!

floatindolphin · 19 Dec 2023 at 23:51

finally getting the car collected tomorrow.

Is tyre wear taken into account when they collect?

Also, I've just checked my original paperwork and I have a warranty on the car that I paid for. Does anyone know if I could cancel that and get a refund too?

GravyMonster · 20 Dec 2023 at 10:23

Not sure on HP deals, but on PCP/leasing they normally stipulate that there has to be a min of 2mm tread depth remaining, otherwise they'll deduct it from the settlement, normally in their favour. Worth checking your terms.

Re. the extended warranty, yes you can cancel it and any remaining period will be pro-rata'd back to you

floatindolphin · 20 Dec 2023 at 15:58

Car's gone!

They're charging me £100 for scratches under the front bumper!? the previous owner must have caught curbs. I've never caught any curbs etc. Guess it's not the end of the world, but not great

Steven Rimmington · 21 Dec 2023 at 12:30

Ryan-3 said:
I did this about five years ago with Blackhorse. I got in contact with them at the 50% point, they arranged for me to drop it off at a BCA location, signed a few bits of paperwork and that was it.

A few weeks later it was all sorted with me no longer registered keeper, finance sorted and had sent me a cheque saying how they owed me a few hundred quid!

This is exactly how it went for me except they collected the car on a transporter, sent it to BCA. Zero hassle and quite easy.

-Ad- · 21 Dec 2023 at 15:52

floatindolphin said:
Car's gone!

They're charging me £100 for scratches under the front bumper!? the previous owner must have caught curbs. I've never caught any curbs etc. Guess it's not the end of the world, but not great

Just for some future information on Voluntary Termination.

You just need to notify them that you're doing a VT (find a letter template online), and they need to come and pickup the car.

You can then cancel insurance/tax from the day they will come pickup (final day of your stated VT).

You don't need to drop it off anywhere, you don't need to sign anything and you're not liable for anything extra unless it's outside of fair wear and tear. Also they cannot use BVRLA guidelines as that's for lease vehicles and far stricter.

disfunktion · 21 Dec 2023 at 17:11

floatindolphin said:
Car's gone!

They're charging me £100 for scratches under the front bumper!? the previous owner must have caught curbs. I've never caught any curbs etc. Guess it's not the end of the world, but not great

You can dispute the charge - they will probably just write it off. They are more than likely not going to be bothered about £100 - The 'inspectors' just mark everything to cover their back when they collect the car. As above BVRLA guidelines apply to a lease/hire not HP.

The car won't be seen by the lease company again as it will just go to an auction company.