Home > Ask Our Experts > How can I get out of my Contract Hire Car Agreement?

How can I get out of my Contract Hire Car Agreement?

By: Garry Crystal - Updated: 15 Sep 2015 | comments*Discuss
 
How Can I Get Out Of My Contract Hire Car Agreement?

Q.I have a personal contract hire car agreement which is approximately half-way through the 2 year agreement and my job has now moved to Belgium.

I have asked the finance company if I can take my car over to Belgium but they won't let me (other than for a holiday). Can I just hand the car back? What penalties am I required to pay? If I stop the payments and hand back the car what can they do?

(Mr Philip Wardle, 6 October 2008)

A.

Early Repayment Fees

There are a number of terms and conditions written into contract hire car agreements that state the requirements and obligations of both parties. When hiring a car using this type of financing option you are basically renting the car for a set period of time and then handing the car back at the end of the contract. With contract hire you do not own the car, although with the rapid depreciation on vehicles this can be seen by some as an advantage.

If you take a look through the terms and conditions of your contract you will no doubt see a clause regarding ending the contract early. Basically you made an agreement with the contract hire company to take on the vehicle for two years but now want to end it after 12 months.

Unfortunately, this is a legally binding agreement and penalties will no doubt be applied. Depending on the finance company they may ask for only the interest payments due on the remaining 12 months of the contract. The very worse case scenario is that you are held liable for the whole contract and the remaining payments for the whole year. The penalties and charges should be contained in your car hire contract agreement and these should be read and then fully discussed with the contract company.

Breach Of Contract

It may be a tempting option to simply hand back the car and leave for Belgium and consider that an end to the matter. However, if you do take this route there are a number of options open to the contract car hire company. The company can and no doubt will use different avenues to recoup their losses. This can involve suing for breach of contract, having you pursued by debt collection agencies for the full contract term amount and the interest fees and debt collection agency fees. They will almost definitely place you name with a credit reference agency, which have a detrimental effect on your credit record making it difficult to obtain credit in the future. Further advice regarding your consumer rights on this matter should be obtained from your local Citizens Advice Bureau.

You might also like...
Share Your Story, Join the Discussion or Seek Advice..
Third, if people travel in a group, the tour guide has already booked the room and the food. People don't have to worried about where to stay and what to eat. The travel company will design the whole travel places and people can play by the travel campany's designing.
Jeni - 15-Sep-15 @ 3:56 PM
Share Your Story, Join the Discussion or Seek Advice...
Title:
(never shown)
Firstname:
(never shown)
Surname:
(never shown)
Email:
(never shown)
Nickname:
(shown)
Comment:
Validate:
Enter word:
Topics
Latest Comments
  • Bikerboy700
    Re: The Law & Verbal Agreements
    A company called search point called me to renew a contract for google search adds. They kept calling and harassing me to…
    15 March 2024
  • Haris
    Re: Marriage Contracts
    will you marry me in my contact I m sengle my whatssap numbr +92 03110331553
    11 February 2024
  • Haris
    Re: Marriage Contracts
    I want to see marrie in my contact i am single whatssap number +92 03110331553
    11 February 2024
  • Avinchi
    Re: Marriage Contracts
    IGNORE COMMENTS! ((((ALL INDIANS SEE)))) Property Rights Under the law of marriage contracts a spouse has the right to live in the…
    22 October 2023
  • Judge Judy
    Re: Marriage Contracts
    Regarding the comments please ignore them (SCAM) Just marry me im a judge, 07538577290. Male - 28 Single.
    22 October 2023
  • Deb
    Re: Contracts and Self Employment
    I am self employed and have a contract my contract states my name and the word "employee" in every section. It has headings…
    28 September 2023
  • DEEP DHALI
    Re: Marriage Contracts
    Hi my name is DEEP KUMAR DHALI and I am from India my age was 21 years old any body have from uk women how i marry you please contact me in…
    15 August 2023
  • Yasin
    Re: Marriage Contracts
    I'm Pakistani my age 26 i need a gril in UK with contract marriage but I am very poor people My WhatsApp+923052150964
    13 July 2023
  • Chris
    Re: Broken Employment Contracts
    I am self-employed I run a sole trade business I received an order from a client to perform a service work We signed a written…
    4 April 2023
  • Junayed
    Re: Marriage Contracts
    I am Junayed and am From Bangladesh My WhatsApp 88012918210
    29 March 2023