Half The Total Amount Payable Rule

If you are looking to change your car before the end of a Hire Purchase or Personal Contract Purchase agreement is complete, then we could help you do just that!

How to change your car early

If you have a regulated agreement on Hire Purchase or Personal Contract Purchase, you might think that you are locked in for the duration of the finance agreement or
until the total amount payable has been paid.

However, this is not necessarily true.

If you have paid half the total amount payable or more, you have the right under the Consumer Credit Act of 1974 to return the goods, even if your car is worth less
than you owe.

For instance, a cash price of £10,000 and interest charges of £2,000 gives a total amount payable of £12,000, you are entitled to return the goods if you have
paid £6,000 or more.

Do you have to keep paying?

If you have taken reasonable care of the car, ensuring it has been serviced correctly to the manufacturer’s specification, is in good order with no damage or abuse, you can hand
it back and pay no more.

However, in the case of a Personal Contract Purchase, if you have exceeded the contract mileage you will be charged at a pence per mile rate for any excess mileage as stated in your
agreement.

HP or PCP return requirements

To check if you are eligible to return a car, there are a few things to check first.

For one, the car must not have been used for hire or reward. It must also be completely free from accident damage.

We can give an indication of any work that may be required before returning a vehicle.

If you would like to know more, please give us a call on 020 8575 2282.

We may be able to help you to change your car before the end of your HP or PCP contract.

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