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Turn a Hire Purchase car over to bank?

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  • 13-12-2009 3:55am
    #1
    MichaelR
    Registered Users Posts: 806 ✭✭✭


    Hello,

    I have, some time ago, bought a car, financing it with a Hire Purchase. The agreement says I can turn the car over to the bank without owing anything, provided I have already paid 50% of the "hire purchase price". I have paid these.

    Question: what wil l happen if I actually try and use that right? Will I never get any credit again?


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    #2
    Jet Black
    Registered Users Posts: 3,845 ✭✭✭Jet Black


    Well it wont be an ideal thing to have on your credit report it will show that you have ended the agreement early.
    When the underwriters view and future application you make for credit they will see this.
    It will also stay there for up to 6years.

    In fairness its better to return the car then have missed payments and if you cant afford it, returning it may look better.


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    #3
    homer911
    Registered Users Posts: 5,119 ✭✭✭homer911


    I was talking to a guy from IP Finance the other day who said a lot of people are doing this - they have never seen so many avail of this option and reckon financial intermediaries are advising people of this right and encouraging it..


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    #4
    MichaelR
    Registered Users Posts: 806 ✭✭✭MichaelR


    Jet Black wrote: »
    Well it wont be an ideal thing to have on your credit report it will show that you have ended the agreement early.
    When the underwriters view and future application you make for credit they will see this.
    It will also stay there for up to 6years.

    In fairness its better to return the car then have missed payments and if you cant afford it, returning it may look better.

    I can afford the payments. But the car is not worth what I owe for it - I'm "in negative equity" on it; and I am considering changing this car. So, turning over to the bank is a better option (purely in money) than selling/trading in.

    However, if I turn the car over and then can not get credit for the other one anywhere in Ireland, and lose my credit cards too, this is probably not a good idea...

    I'll probably go to the bank and ask. They won't punish me just for asking.


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