Can a car be protected by a hire purchase agreement?

For example, if your car was repossessed by virtue of a hire purchase agreement and you have paid more than one third of the total price of the car under the agreement then this means that the car becomes protected goods.

Can a hire purchase agreement be taken without a court order?

If your hire purchase agreement falls within the above conditions then they cannot take the car without a court order, no matter how loud they shout! If you find yourself in a situation where your car has been repossessed and you don’t think the right process was followed then why not contact one of our team?

Who is the owner of a hire car?

Who owns the car in a hire purchase? The finance in a hire purchase is secured against the car. This means that until the agreement is paid off in full, the car remains the property of the finance company. Once you have paid off everything, including any fees to complete the agreement, you officially become the owner of the car.

Can a car be seized under hire purchase?

Unless legislation is introduced exempting items under hire purchase, the position will not be resolved unless a case is brought to the Court of Appeal. Generally, whilst many vehicles subject to finance are seized, the same cannot be said for vehicles subject to Hire Purchase.

Can a bailiff take my car on hire?

But some bailiffs will take or clamp a car on hire purchase anyway, arguing that the law is on their side. This is just one more reason why you should… Contact from bailiffs – or even debt collectors – is usually a sign that your debts have got out of your control.

What happens if you fail to pay a hire purchase agreement?

If you fail to keep up repayments on a hire purchase agreement, it is possible that you will face repossession of those goods. A lender can take legal action against you for the arrears you owe but they cannot enter your premises to repossess these goods without your consent, they must first apply to the court for a repossession order.

Can a bailiff take goods from a hire purchase agreement?

Bailiffs can only take goods that belong to you. This means they’re not allowed to take goods bought through hire purchase agreements because they still belong to the lender at this point. Find out more about what bailiffs can take .