Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Please note that it is not permitted to have referral links posted in your signature. Keep these links contained in the appropriate forum. Thank you.

https://www.boards.ie/discussion/2055940817/signature-rules

Hire Purchase Query

Options
  • 10-12-2008 10:07am
    #1
    lostwithoutfred
    Closed Accounts Posts: 9 ✭


    Hi all,

    I just have a query with regards to my car. I bought the car through BOS Hire Purchase back in 2007. Its a 07 3 door Mitsubishi Colt. However i have a problem now. I will need to get a 5 door car next year(new baby on the way) and there is currently €7500 owing on the Colt. I would gladly sell the car for €7500 and just clear the finance but it is impossible to sell cars at the moment. Realistically i want to downgrade to a 00/01 car which i will buy for cash. Times are getting tighter at the moment and i really need to get rid of the car finance in order to release some badly needed monthly cash that is currently going to the finance company.
    My partner has done some work in the past with repossession cars and reckons that i should just consider returning the car to the finance company. My question is this: what percentage of the finance needs to be paid before the finance company will take the car back. I do not have a massive problem in theory if my credit rating takes a hit.

    Any advice would be gratefully received.


Comments

  • Options
    #2
    Anan1
    Registered Users Posts: 22,815 ✭✭✭✭Anan1


    Ring the finance company, explain your situation, and see what your options are. Whatever you do, do not mess up your credit rating, especially with a child on the way. Just my 2c.


  • Options
    #3
    Drummerboy08
    Closed Accounts Posts: 12,102 ✭✭✭✭Drummerboy08


    I'd be surprised if a finance co took it back without a problem. There's a lot of finance repossession cars out there at the minute.

    I wouldnt be so carefree on the credit rating front either - its not somethin to throw away like that - you dont know what might happen down the road that you will need a loan..

    €7500 wouldnt be a bad price for it - thats around the book value of your car at the minute. I'd try to sell it first before i threw away my credit rating - its a good car for someone.


  • Options
    #4
    copacetic
    Subscribers Posts: 16,587 ✭✭✭✭copacetic


    in a standard HP agreement, you are entitled to return the car once you have paid half of the 'hire purchase' price, the total including deposit and interest.

    If you haven't reached that price, you can only settle the cost, not hand it back. Handing it back when not entitled too will likely lead to legal action.

    Best bet if not near halfway is to sell it on and pay difference to finance company.


  • Options
    #5
    Ferris
    Registered Users Posts: 2,287 ✭✭✭Ferris


    Afaik the car doesn't belong to you until you complete the final payment so you can't sell it. Thats the problem with HP.

    If you hand it back then they will auction it off, probably for a rubbish price and if it doesn't make €7500 you will owe the balance.

    Best option is to get rid of the car is to buy off the remaining finance (with a loan?) and then sell the car, I wouldn't recommend this either as it is very difficult to sell cars at the moment.

    My advice is to get a baby seat for the front seat and keep the car. Talk to the finance company however, they won't wipe your credit rating for asking questions.


  • Options
    #6
    copacetic
    Subscribers Posts: 16,587 ✭✭✭✭copacetic


    Ferris wrote: »
    Afaik the car doesn't belong to you until you complete the final payment so you can't sell it. Thats the problem with HP.

    If you hand it back then they will auction it off, probably for a rubbish price and if it doesn't make €7500 you will owe the balance.

    Best option is to get rid of the car is to buy off the remaining finance (with a loan?) and then sell the car, I wouldn't recommend this either as it is very difficult to sell cars at the moment.

    My advice is to get a baby seat for the front seat and keep the car. Talk to the finance company however, they won't wipe your credit rating for asking questions.

    of course you can sell it to clear the finance, the buyer just gets a draft payable to the finance company rather than the OP.


  • Advertisement
  • Options
    #7
    Ferris
    Registered Users Posts: 2,287 ✭✭✭Ferris


    copacetic wrote: »
    of course you can sell it to clear the finance, the buyer just gets a draft payable to the finance company rather than the OP.

    Are you sure? I would imagine that this has to be done in conjunction with the finance house as they would have to sign the car over to the buyer. I would be extremely nervous of buying a car off someone this way.

    Also if you tell a buyer that its just to pay off finance he's going to bend you over, big time.


  • Options
    #8
    copacetic
    Subscribers Posts: 16,587 ✭✭✭✭copacetic


    Ferris wrote: »
    Are you sure? I would imagine that this has to be done in conjunction with the finance house as they would have to sign the car over to the buyer. I would be extremely nervous of buying a car off someone this way.

    Also if you tell a buyer that its just to pay off finance he's going to bend you over, big time.

    It is done all the time, although the finance company 'own' the car, the user has all the documentation. The buyer calls up finance company to confirm what is owing, then writes a draft to them. The buyer and seller both go to post office and witness draft being sent. Done and done.

    Fair enough about being bent over, but buyer will know about finance by doing a cartell on the car.


Advertisement