Contract Hire Agreements - Legal help needed

[evotim]

Does anybody on here have any knowledge on contract hire agreements? I'm trying to find out how I can get out of one of these early, also the orignal document makes no reference to any early termination penalty fee, so does the company have a right to charge me what they like even though I havent signed anything accepting that? Desparate here, stuck with a car I dont want for another 21 months :-(

[Plotloss]

If its regulated credit (sub £25000) and you have gone 50% or more through your term then you can hand the car back without penalty.

So if you are on a 3 year then in 3 months you can walk away.

[evotim]

Matt

So this would apply to a contatct hire agreement through my own company? (with me as sole director and backer) Mine is an unregulated agreement, so do you know how thIngs stand on this? Or do you know a good person to talk to?

Thanks

[lazyitus]

Tim, you will almost certainly be able to get a settlement figure.

BUT:

1) It will be expensive.

&

2) You will also have to give the vehicle back. (It is not yours to sell and will always be the property of the finance company).

[bobthebench]

Seems a bit confusing so far. If you have a contract hire agreement i.e. you hire an item long term, rather than hire purchase, i.e. you will own eventually but pay by instalments, then this is not a credit agreement, but a rental. When you signed up, a degree of profit would be factored in by the hirer recoverable over the length of the hire. If you want to terminate early, you can be liable for damages amounting to lost profit, you are in effect seeking to breach a contract. If the above is correct, then no set figure, but a matter for you to negotiate your way out the contract - or put in legal terms, the hire company has you over a barrel.