Car on finance???

hi we have our car on finance and have for a while!

was reading the small print the other day and it says after the last monthly direct debit payment there is a one off payment of 鎷?00 to pay!

if we did not pay this they could take the car back etc etc!

do they automatically take the extra 鎷?00 in the direct debit at the end or do we have to pay it manually??!

thanks

Car on finance???

The 鎷?00 is taken automatically by direct debit. If you decided not to pay it, they couldn%26#039;t come and take the car just for that. Once you have paid over 2/3 rds of the purchase price they cannot repossess the car anyway. What would happen is that the company would chase you through the small claims court for the money and obtain a CCJ against you if you don%26#039;t pay. This will affect any future credit you wanted by ruining your credit rating. Not worth it just for 鎷?00 xxx

Car on finance???

If itn says after the last monthly payment the chances are they will take it, however, it would be wise to contact the finance to check.

Car on finance???

If the finance is a Hire Purchase Its probably an option to purchase fee

The car belongs to the finance company and it is hired to you whilst the debt remains. Thats why it is called %26#039;Hire Purchase%26#039; . at the end of the agreement you can return the car if you wish. Or you can purchase it for a token offer of the 鎷?00

If the agreement is regulated by the consumer credit act (it will say on it if it is) then the lender can take possession if there are arrears of the repayments. they can also take it back when you refuse to pay the option to purchase fee

You can give them the car back at any time after half of the repayments have been met