The Consumer Credit Act allows for the possibility of terminating a hire purchase agreement early, but only if there are significant changes to your circumstances, such as losing your job. As long as you have paid for at least half of the car’s value, it is possible to return the car without having to make any more payments.
It’s worth noting that you can terminate a hire purchase agreement early if you haven’t paid up to half of the value of the car too. However, you will need to pay the difference between what you have paid and half the car’s value.
Read our blog post on cancelling car finance for more information.
In the event you miss a monthly hire purchase repayment, you’ll receive a notification from your financial lender. This may also include an additional fee or an increase to the interest you need to pay. If you continuously miss payments, you’ll be at risk of having your car repossessed.
From affordable manufacturers like Dacia and MG to the electric majesty of Mazda and Vauxhall, there are plenty of used and new cars available with hire purchase at Bristol Street Motors.
For more information on lease financing and hire purchase options, reach out to us today to make an enquiry. Alternatively, you can learn about our different financing options available on our car finance explained page.