Cancelling Hire purchase agreement

[Vectracious]

Have already emailed the finance company about what the deal is - but has anyone here cancelled a hire purchase/lease agreement early and what are the consequences/what I should look out for with them?

[sooty]

Have already emailed the finance company about what the deal is - but has anyone here cancelled a hire purchase/lease agreement early and what are the consequences/what I should look out for with them?

You normally pay a two month penalty (so two times what you're paying per month already). And if under 12 months there's normally some extras too.
It's not toooo bad though

[Vectracious]

You normally pay a two month penalty (so two times what you're paying per month already). And if under 12 months there's normally some extras too.
It's not toooo bad though

less than I thought then - as good as VW finance were to deal with via the dealer - the finance company themselves are idiots and have sent me almost nothing in terms of paperwork so have no idea about what the penalty fees are for cancelling it early..

[JohnBu]

Usually it's not that bad to pay it out early, depending on the original contract.

Having said that, if you take out a new HP loan which is larger than the existing one, fees are minimal.

New car for you Pete?

[Vectracious]

New car for you Pete?

old car would be more appropriate. Just looking at a few different options and what we need to do over the next 5 years and this is a sacrifice I might have to make...

[nuggz]

return of the vectra!!

[JohnBu]

old car would be more appropriate. Just looking at a few different options and what we need to do over the next 5 years and this is a sacrifice I might have to make...

Been thinking about that move to Hampton...........Park? :lol:

Give the finance company a call to ask what is the total exit fee, or the difference between the current loan balance and the current pay out fee.

[JohnBu]

return of the vectra!!

Hope Pete isn't doing it that tough! :D

[Vectracious]

actually wasnt that bad at all - all I have to pay out is what is remaining on the lease + balloon payment. The interest on the whole lease was calculated at the start and added to the amount financed - so VW finance gets all their interest they would have got so they are definitely not worse off - and I've paid no more than what I would have paid over the next 2 and a bit years anyway.

Yeah, the house situation is what's got me thinking John, and what I pay on the dub each month could impact on our repayments plus what we can borrow being a liability. Dad is about to swap over his car so I can get his MY08 VE Calais (although it does have quite a few k's on it) for very cheap, and I could sell mine privately and have enough money to pay off the lease, plus buy Dad's old car. I don't want to get rid of the Passat, but sometimes you just need to sacrifice some luxuries to get what you want.

[Vectracious]

return of the vectra!!

they are too old unfortunately..........

[xplosv57]

return of the vectra!!

Pffft no way, return of the Scooby Doo!!!


actually wasnt that bad at all - all I have to pay out is what is remaining on the lease + balloon payment. The interest on the whole lease was calculated at the start and added to the amount financed - so VW finance gets all their interest they would have got so they are definitely not worse off - and I've paid no more than what I would have paid over the next 2 and a bit years anyway.

Yeah, the house situation is what's got me thinking John, and what I pay on the dub each month could impact on our repayments plus what we can borrow being a liability. Dad is about to swap over his car so I can get his MY08 VE Calais (although it does have quite a few k's on it) for very cheap, and I could sell mine privately and have enough money to pay off the lease, plus buy Dad's old car. I don't want to get rid of the Passat, but sometimes you just need to sacrifice some luxuries to get what you want.

How many k's??

Regardless, you know whos used it and that it has (or hasn't) been taken care of, and being an '08, it's only 2 years old so still a half decent car!!

Still a big enough car for the family too!!

[Vectracious]

How many k's??

Regardless, you know whos used it and that it has (or hasn't) been taken care of, and being an '08, it's only 2 years old so still a half decent car!!

Still a big enough car for the family too!!

about 90K - Dad's asked for a price to buy - I'll only seriously consider doing this if I get an awesome price on the Calais - otherwise as I really don't want to get rid of the R - I'll keep it and only get rid of it if I absolutely have to.

Only thing about the Calais is it's a sedan - and just on Friday, I had to take a whole lot of stock between the stores - if I had a sedan, I would have had to do a couple of trips at least. And I do stock transfers like this more often than not.

[xplosv57]

about 90K - Dad's asked for a price to buy - I'll only seriously consider doing this if I get an awesome price on the Calais - otherwise as I really don't want to get rid of the R - I'll keep it and only get rid of it if I absolutely have to.

Only thing about the Calais is it's a sedan - and just on Friday, I had to take a whole lot of stock between the stores - if I had a sedan, I would have had to do a couple of trips at least. And I do stock transfers like this more often than not.

90k, thats nothing, well it's alot for the age but not alot for the car that it would have any issues.

Also the rear seat of the VE has alot of room so could also use that space to do stock transfers, as well as the boot which is decent for room.

Then again, if you can avoid selling the R36, which is such an awesome car, then that would be great!!