What are my rights re: hire purchase car which we no longer want after 5 years paying?

Got the car 5 years ago from Welcome finance company the interest on it is sky high, we have been paying so much every month for 5 years ( the payment was reduced due to loss of my job) we had problems with the car, gear box broken, few other bits that are not working so we decided to get rid of it, we called them to ask them to take it back, they said i must write a letter with a reason, i wrote them a letter 6 weeks ago, explaining why we had to give the car back, they did not reply until two days ago they rang us, saying they have requested the RAC to come %26amp; assessment of the vehicle. the RAC came this morning %26amp; said the vehicle condition report comes up to 鎷?48.39 which we have to pay!! we rang the company told them we aint paying, they said they would get back to me, anyway the car was untaxed because i cancelled my insurance policy and told the welcome finance to take it away before the tax runs out 31st octoner 2007, now car is clamped today! we cant afford to pay to remove it

What are my rights re: hire purchase car which we no longer want after 5 years paying?

Based on a number of things you said in your question, I am going to guess you are in the UK so my answer may or may not be correct based on you laws.

Here in the US, you can not make a bad car the problem of the finance company even if they also sold the car. Used cars are not warranted for 5 years. You borrowed money and you still owe then regardless if the car is completely out of commission. By dropping insurance you may be in violation of the loan agreement as well.