How to get out of Hire Purchase?
Most HP agreements require you to pay half of the total price (cash price, charges (interest), and the final option to purchase fee) plus the cost of any repairs to put the vehicle into a reasonable condition for its age. The good news is that any deposit you paid counts towards all this. You maybe better off selling the car and paying the proceeds to the finance company, but you must disclose to any purchaser that it is not your car, and the sale price must be enough to pay off the loan (or you will have to make up the difference). Early settlement will entitle you to a rebate of charges. These situations are never easy for either you or the finance company. Talk to them; they maybe able to agree an extension to lower the repayments, or you maybe able to introduce an acceptable person to take over the car. The important thing is to keep them informed as it is their car, and your credit rating! They will have experience of your situation. You need to talk to someone senior, and I’m sur
