contract hire

[Tom]

Ok this is a long shot, but do any of you know any ways of getting out of a Contract Hire agreement for a car? We're about 22 months into it, with 14 months left, and this has been a financially bad year for us. I know that on HP agreements you can return the product just after half way through the contract, and not pay any more, is there a similar get-out on Contract Hire?

The reasons behind being in this situation are very complex, suffice it to say that hindsight is a very common trait. It would have been a good idea, but for work being quiet this year.

 

[Wij]

That's not the kind of contract I know about. Let me know if the situation becomes too 'complex' though, if you catch my drift.

 

[silverthorn]

Tom,
is this the kind where you have three options at the end of the agreement? y'know...
1 - keep the car, pay mega mega amount outstanding in one go
2 - trade car in, only to find you still owe them money even though the bastich's told you at the time the car would be used as a deposit on a new car
3 - return the car, no questions asked at end of agreement?

If it is, then there should be something on the contract that states as long as you've paid more than half of the cars cost (this includes the deposit when you bought it) and you have not exceeded the mileage limit they set then you can hand it back in without any questions asked.

I may be off the mark big time and am just talking about the HP but I'm sure this was the same kind of thing I had when I bought my Corsa. I realised I was going to get stung majorly and about half way through the agreement I returned it to Vauxhall under their terms and conditions.

You may need to call the finance company to check but ensure, please ensure, you do read the small print as there should be details on grounds to return the car if you've paid more than half...

...on the other hand as I said above, I could be waffling on about HP and being no help at all

Hope it is of help
S

 

[Tom]

This is contract hire, only available to businesses, basically where you pay a monthly fee for 3 years, and return the car at the end of it. They want about £7000 to cancel the contract, but to continue paying the contract would cost about £6000. Not much option there then :/

 

[silverthorn]

ah.... sorry mate, thought I might have been on the right track there

 

[dysfunction]

I think you are pretty much locked into the contract...