Hire Purchase Half Rule?

lucybousy

My dad has a 07 car on HP with Bank of Scotland he has been on half payments for the last year 250 a month and they want him to start paying 500 a month now. The family have been helping out but cant anymore. he wants hand back the car details are as follows
Cash Price: 25112
Trade in: 12612
Balance:12500
Total Finance:25112
Interest Charge: 5205
Hire Purchase Price: 30467

as of today they owe 8000 but i think 3000 is arrears can they hand back the car and be finished and if they do chase them for arrears they just dont have the money they are in there 60's and my parents lost jobs and money and are really in alot trouble financially this would be one less headache if they could get rid of this debt. they have a 00 corolla they could use. Please any advise anyone can give me cos there at there wits end. Finance with Bank of scotland now with Certus

bop1977

my understanding is that the half back rule was done away with and that you were entitled to hand the car back at any point. however because there are arrears in this case things will be more complecated.

the only way to know for sure is to talk to the finance company.

Kenny Logins

lucybousy wrote: »

Cash Price: 25112
Trade in: 12612
Balance:12500
Total Finance:25112
Interest Charge: 5205
Hire Purchase Price: 30467

That doesn't add up, where has the €12,612 trade-in gone?

lucybousy

Cash Price: 25112
Trade in: 12612
Balance:12500
Settlement: 12612
Total Finance:25112
Interest Charge: 5205
Hire Purchase Price: 30467


8000 left as of yesterday

Jimdagym

lucybousy wrote: »

Cash Price: 25112
Trade in: 12612
Balance:12500
Settlement: 12612
Total Finance:25112
Interest Charge: 5205
Hire Purchase Price: 30467


8000 left as of yesterday

That still doesn't make sense to me. Did they trade in a car for 12612 but still owed 12612 on it and refinanced?

lucybousy

sorry for confusion. yes they traded in and still owed 12612

carbon nanotube

thats why car finance is a joke, id rather pull my eyes out backwards than get a car like that.

Wheelnut

lucybousy wrote: »

sorry for confusion. yes they traded in and still owed 12612

I'm a bit slow too, did they finance the total cost of the car (€25,112) and take the trade-in vaue (€12,612) as cash? In other words, the "trade in" was really a cash sale, so that money is not really a factor in this calculation?

lucybousy

yeah there was still finance on the car they traded in so 12612 was cash sale