Hire purchase agreements – looking after the goods
You will only become the owner of the goods when you have paid all amounts due under this agreement, including any option to purchase fee and any other conditions have been satisfied.
If you fail to make all the payments under this agreement when due, the goods could be repossessed. This can be done without a court order unless a third of the total amount payable has been paid.
Until you become the owner of the goods you must;
-not sell or give them away,
-keep them comprehensively insured against all risks and for the full replacement value,
-keep them in good condition and repair, and serviced in accordance with the manufacturer’s recommendations and any applicable warranty.
If you fail to do this you may have to compensate the Lender for any loss they suffer.
You should read the Pre-Contract Credit Information regarding any final payment under the agreement in order to fully understand your obligations regarding payment of this sum. You will be liable to pay any final payment to gain ownership of the vehicle.
Where a mileage allowance is stipulated and you choose to return the goods, you will be liable for excess mileage charges, details of which will be included in the Pre-Contract Credit Information.
Document updated May 2020.