Information on hire purchase termination and options (construction plant & equipment)

[doomandgloom]

All
Our company procured some construction plant and equipment in the boom years on 3 year Hire Purchase agreements. I am now wondering what exit strategies are available. We are 50% through the agreement.
I have read posts relating to general HP agreements where once 50% is paid,goods can be returned.
I have checked out citizens advice websites etc However I believe that this does not apply for specialist plant and is more relevant for general purchases (eg cars etc)
Does anyone know of any such cases, and also, can anyone give me details of an advisor who could advise on the matter (for a fee of course).
Many thanks and any assistance would be much appreciated
Tom

 

[delgirl]

Re: Information on hire purchase termination and options (construction plant & equipm

My understanding is that if you purchase as a consumer, you are entitled to return the purchase under the half rule. However, if you have signed an "Unregulated Business Hire Purchase Agreement", you unfortunately are not entitled to use the half rule as a way out.

Your options are to sell the plant yourself and pay off the balance owing or return the plant and allow the lender to auction it off for nothing and you will have to pay the balance owing.

A friend of mine is a medium-sized developer and he has restructured/extended his hire purchase agreements with his bank in order to reduce the monthy payments as he's unable to sell the equipment.

It's possibly the best option in a no-win situation.

You should contact MABS for advice, that's who I got this info from and they're very helpful and knowledgeable.

Good luck!