When income falters and you can't keep up hire-purchase instalments on a car or home, many worry about repossession and being left in debt. Knowing your rights helps you decide better and avoid losing out more than necessary.
Repossession doesn't always end the matter
Under a hire-purchase contract, the finance company owns the asset until you've paid in full. On default per the terms, they may repossess and auction it. If the auction fetches less than the outstanding balance, you may be billed for the "shortfall" — but the amount demanded must be fair and lawful, and in many cases it can be contested or negotiated down.
What to do when you start to struggle
- Don't go silent — contact the finance company to restructure or pause payments before defaulting.
- Keep all documents — contract, instalment receipts, demand letters, termination notice.
- Check the repossession and auction process — was it lawful and per the contract?
- Don't sign an acknowledgment of the shortfall before a lawyer verifies it.
If you're sued for the shortfall
If sued for a post-auction shortfall, a lawyer checks whether the calculation is correct and fair — and many cases end in mediated instalments at an affordable amount.
📌 See more: civil litigation & enforcement
If you're facing repossession or a shortfall claim, talk to our team to plan a negotiation and protect your rights.