50/50 Finance

doddie1974

Folks

I took out a finance deal in Jan 2008 based on 50% down payment and 50% to be paid in 2010.

I was told that I would have the option of Trading up, Handing the keys back or paying the outstanding balance.

It would now seem the only offer on the table is Pay the balance....

Can anyone advise if afet paying 50% of the finanace are you able to just hand the keys back without defaulting.....

any assistance would be appreciated

Alex

helimachoptor

What does the contract say?

doddie1974

It's doesn't thats the problem..... the T&C's are on 1 page.... very limited on detail

tommy21

doddie1974 wrote: »

It's doesn't thats the problem..... the T&C's are on 1 page.... very limited on detail

Well then the verbal contract is all you have to go on. How much money are we talking about here?

doddie1974

We are talking about 22.5K outstanding and the dealer will only offer 15K for the car so lost 30K in 2 years.....

Thanks for your inputs, I have found some addional info which I have pasted below for anyone who finds themself in the same position

Ending your Hire Purchase agreement using the half rule

You have the right to end the hire purchase agreement by using the half rule. This means that if you have paid more than half the 'hire purchase' price, you can return the car and end the agreement. If you have damaged the car and are returning it under the half rule you must pay for the cost of any repairs.
You should write to the finance company and tell them you want to end the agreement using the half rule. You must put this in writing. Speaking to someone over the phone could be interpreted as voluntary surrender – putting it in writing makes it very clear how you want to end the agreement. You should read your agreement to see how much the half rule amount will be.

Under the half rule, you will not need to make any further payments from the date you return the car. However if you are between repayments, the next payment may already have been processed. You should contact your provider to refund the payment.
Even if you have not paid half the 'hire purchase' price, you can still return your car under the ‘half rule’. To do this you will need to calculate how much you still need to pay to bring your payments up to half the hire purchase price, as this could be cheaper than having the car repossessed or surrendering the car voluntarily.

Steps to follow when returning your car under a hire purchase agreement

· Contact your car finance provider or bank, informing them you want to return the car.
· Agree a pick up point or return the car yourself. If you don’t you may be charged a collection fee.
· Take pictures of the car, inside and out, to confirm the condition of the car so you are not liable for any additional costs. If there are damages to the car, you may want to get the repairs done by your own mechanic before you send it back.
· Do not sign anything else.

Ending your Hire Purchase agreement by voluntary surrender

You may decide you no longer want the car or that you cannot make the repayments. You can give back the car to the finance company by signing a voluntary surrender form. Giving back the car this way means you still owe the balance due on the agreement – your debt does not disappear with the car. The finance company sells the car and the money they get goes towards your debt but you will still have to make repayments until the entire debt is paid.

Can your car be repossessed?

Only in certain circumstances. If you have paid off less than one-third of the hire purchase price, the car finance company can take back the car without taking legal action against you. They can only do this if you broke the terms of the agreement, for example, by missing payments.

If you have paid more than one-third of the hire purchase price, a lender cannot repossess the car without taking legal action against you. They cannot repossess the car at your home, even if you have paid less than one-third of the hire purchase price.

Will this affect your credit history?

If your car is repossessed or you surrender it voluntarily, you must pay back what you owe to the finance company. As with a loan or mortgage, if you miss payments or cannot pay back what you owe, your credit history will be affected. If you pay back more than half the hire purchase price and end your agreement, you will not owe any more money.

bcirl03

This wouldnt be the Opel 50/50 we are talking about here?

doddie1974

you would be correct

bcirl03

doddie1974 wrote: »

you would be correct

Grand, used the same offer myself and got a few 'unusual' sales stories when buying the car so with you on that one.

One thing that did pee me off was when the finance was up I never received a letter to tell me that payment was due. If it wasn’t for the fact I made a note in the old diary to have the money ready they would have direct debited my account.

Sorry I can’t be more help but wanted to let you know I had similar stories told to me.