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Just saw this now.
In relation to the HP settlement figure, does this figure represent the total amount outstanding if you were to continue paying at your usual rate or is it a lower amount? If (but only if) it's a lower amount then, yes, I was mistaken. I suspect I'm right though.
In relation to repossession of the car, the type of agreement you have makes a considerable difference. With HP agreements, the finance company can repossess the car and if its subsequent sale doesn't produce the amount you agreed to pay them, they can pursue you for the balance.
If you purchased the car with a standard (non-HP) loan, the lending institution does not have the option of repossession. If you fail to make repayments, their only recourse is to pursue you for the amount you owe, by whatever means are open to them. Repossession, however, is not an option.