- 1). Cancel the hire purchase contract without penalty if the purchase was within a certain time frame. Many establishments offer a three-day grace period from the time of purchase to cancel the contract and return the product. Review your hire purchase agreement to ensure it is clearly stated in the contract.
- 2). Pay off the loan amount early to end the contract. Some hire purchase agreements allow you to end the contract term early if you payoff the loan amount. However, there is usually a penalty associated with early payoff.
- 3). Return the product to the seller. The seller may accept the product back if it is in good condition, but may sell the product to recoup the money that would have been made during the hire purchase agreement contract length. You will be liable for the difference between what the seller got for the product and what you owe on the agreement.
- 4). Locate someone to take over the hire purchase agreement. If the seller is willing, a new buyer can sign a new hire purchase agreement for your product, therefore canceling the old agreement and your obligation to pay it off.
- 5). Cancel the agreement by paying off more than half of the contract payments. Some hire purchase agreements allow you to return the product as long as half or more payments have been made and the product is in good condition. Review your hire purchase agreement for the exact stipulations.
previous post
next post