HP

[dickiecox]

Hi all thanks for looking!

Just wondered... I've got a Citroen C5 Tourer, 2 and a bit years old on 5 years HP. Can't stand the car now and i'm sure due to blistering depreciation it's not worth what i owe, whats the best way out?? any advice re giving it back at the half way stage (as my agreement says i can?) or do i chop it in for something else and roll over a bit of the depreciation.
I'm not against lease deals or anything else so open to idea's.. Car is used for mainly business (my own) so i stick interest payments and anything else i can through the books.

[Eric Mc]

Are there extra charges for finishing the agreement early?

[dickiecox]

Only charges i can see are the ones to bring the car back to a saleable condition, so scratches, dents etc. no problem on mine as there is very little to do.

[Eric Mc]

I would contact the HP company to find out what closing the account early would imply.

[sumo69]

If its a regulated agreement, I believe you can walk away once the agreement is 50% complete - this should be in the copy of your finance agreement but speak to the lender to confirm.

David

[rfoster]

sumo69 said:

If its a regulated agreement, I believe you can walk away once the agreement is 50% complete - this should be in the copy of your finance agreement but speak to the lender to confirm.

David

Yes - you can voluntarily terminate an agreement that's regulated by the consumer credit act once you have paid 50% of all charges payable under the agreement (not necessarily at the halfway stage through the agreement.) The vehicle must be in a reasonable condition for its age or the finance company will reserve the right to charge for unacceptable vehicle damage.

Whilst it is your right to terminate early should you wish, if it were me I would suggest first looking at what deal you could get as a part exchange and settle the finance accordingly. Whilst terminating an agreement does not affect your credit rating, it will show on your credit file and finance companies may take this into account when considering a future finance application.