"Half rule" hp agreement

btkm8unsl0w5r4

Senna wrote: »

Simple answer no, you must have paid 50% or more to use the half rule. So you would need to give them the 10k cheque first when/before using the rule.

Just an idea, but could you approach your bank about a loan for 10k, stretch it out over a longer term, 3-5 years. You could be rid of the car and be paying much less per month than your current repayments.

Unfortunatly then you also have no car. Your credit rating will not be effected but a S will go down after the loan (surendered, I know not technically surendered), while this is not all that bad, it will follow you around for years and years.

Dr.Tom

Drummerboy08 wrote: »

You dont have to worry about disposing the vehicle with a lease. You should have no worries as to what the van is worth doc, because you dont own the vehicle at the end of the term.

Had you hire purchased the vehicle, your monthly rentals would have been more expensive than compared to a Lease, because you would be financing the entire cost of the vehicle, as opposed to the entire cost minus the residual.

Any chance you could explain this more please????? Im a small bit confused

Drummerboy08

Dr.Tom wrote: »

Any chance you could explain this more please????? Im a small bit confused

K. If you lease a vehicle (contract hire agreement), basically the company you lease from (Leaseplan, Merrion, etc) will agree with the finance company (Lombard, BOI, etc) to buy your vehicle backat the end of the agreed term, e.g. 36 months & 100,000kms, or whatever it is.

So, lets say you want to lease a new Ford Transit. Lets say the cost of the van is 20k. Based on the length of the lease, and the mileage you will do in each year on the lease, the lease company will put a residual, or a "buyback" into the contract. This amount is the lease company's responsibility to pay - the Customer, i.e. you, does not worry about this.

So, -

Cost of van - 20k
Buyback - 5k (This is the responsibility of the Lease company, or buyback dealer)
Amount to finance - 15k (This amount will be in your name, and is your responsibility)

Thats basically how a lease works, give or take a few bits. However, as the Half Rule only applies to Hire Purchase agreements, you wouldnt be eligible to use it.

If you are in a lease that you cannot afford, I'd speak to whatever dealer you leased the vehicle through. They can get a settlement figure on the amount outstanding, and will try to work with you to come to an agreement that suits both. You may be able to extend the lease term, to try and lower your monthly rental. Hope this helps.

Dr.Tom

Drummerboy08 wrote: »

So, lets say you want to lease a new Ford Transit. Lets say the cost of the van is 20k. Based on the length of the lease, and the mileage you will do in each year on the lease, the lease company will put a residual, or a "buyback" into the contract. This amount is the lease company's responsibility to pay - the Customer, i.e. you, does not worry about this

I never heard of this before and its interesting to know. Should that be in my contract somewhere??

VeryRapidSkoda

Hi all,

I was also interested in knowing about the half rule but I have a question to add. What happens when you trade a car in as part exchange and the balance is financed?

e.g New car €20,00
less Car trade in €5,000
= Finance €15,000

The hp docs include all of the above figures even though only 15,000 owed. They add on interest making the total agreement price of 24,000

They have 1/2 as €12,000
and 1/3 as €8,000

Confused yet? ringing up I found about 14,000 of the 15,000 left to settle. Does this mean I only have 2,000 left to make the half according to the contract?

Can anyone explainthis please?
Thanks.

Donkey101

Hi,

I also havea question regarding same:

half term amount = €21500.00 (as per HP agreement)
Settlement Figure = €30500.00 (as of phone call today)
total of repayments todate = €10100.00 (sum of all monthly payments)

how much would i have to give them when i handed the car back under the half term rule?

is it €11400 (21500-10100)
or
is it €9000 (30500-21500)

thanks.

Also, is the half term amount the amount that has been paid back, or the amount remaining to be paid?

Our man in Havana

It is the amount that takes you to what you would have paid if the term went to half term.

Say for example over the whole term you would have paid a total of €30000. So under the half rule once €15000 was paid you could walk away.

So it looks like you will have to give them another 11,400 to get out.

Donkey101

Sound - Thanks for the bad news.

Any idea how long something like this usually takes?
I have another payment going in the next few days, but would like it sorted before next months payment.

Our man in Havana

They will not be keen to let you away like that. They will deny such a rule exists.

What you usually have to do is send them a letter and the money saying you are invoking the half rule. Expect them to have the car forensically examined for damage so they can charge you more.

Donkey101

Any idea how i can be sure that the amount I send them by cheque is enough to ensure that I am over the 50% requirement.

Our man in Havana

Ring an ask them. Be prepared for some bull from them.

Simpliest way would be to ask them how much would be repaid over the entire period, half that and deduct what you paid from that amount.

Donkey101

I have requested a statement of monies paid to date, plus a settlement figure from them today.

My HP agreement states the total cost of the agreement (43,000) & the half term amount (21,500).

They also confirmed by phone today that the settlement amount would be reduced by the full amount of this month payment.

So using that formula, its a matter of getting the total of monies paid to date (10,100), taking that from the stated half term amount (21,500), and writing a cheque for the difference (11,400).

Is it that simple, or am I just trying to over complicate the whole thing?

Our man in Havana

It is that simple.

Remember that they will try to obstruct you at every turn. Under no circumstances sign a voluntary surrender as this will wreck your credit rating.

Donkey101

Sweet, Thanks for the advice.

Will let the board know how I get on. :rolleyes:

Donkey101

What kind of heads up time would you need to give them?

Could you arrange to meet at their head office & hand deliver the cheque & the keys?

Or would you be better to write to them, with the cheque, sending it by registered Post & asking them to contact you to arrange a time & place to drop the car off?

Kanana

Is it better to :

1. Add money to the hire purchase agreement to reach Half Price
2. Send them the letter with the HR
3. Give back the car

or

1. Send them them the letter with the HR and include a check for the difference I have already paid and the Half Price
2. Give back the car

My concerned is that in the second situation, at the time I would send the letter my agreement wouldn't be paid at half so they might tell me that I can't use the HR.

Thanks

Donkey101

From what I understand (and this is what I'm gonna do)

(1) - write cheque for balance (11,400 in my case)
(2) - send cheque & letter by registered post indicating the following:

Dear Sir/Madam,

I am hereby informing you that, under the "Half Rule" as per the Hire Purchase Act of 1946, I am returning my vehicle. The stated ½ Hire Purchase Price as per my Agreement is €XXXXX. I have made payments of €XXXX as of Xth November 2009. I am enclosing a cheque for the difference to the value of €11,400.00. Please note that this is not a voluntary surrender and I will not be signing any document to that effect. Please contact me at 08X-XXXXXXX or on 01-XXXXXXX so that we can discuss a mutually agreeable date, time and location for the return of the vehicle.

Sincerely

(3) - Then cancel my direct debit and wait for them to ring me to arrange dropping off the car.

This is the plan, just waiting to get the money together.

Donkey101

Just one other question to throw out there.........

What level of mileage is considered to be 'excess'?

For example, a 5 year old car with 150,000kms or 100,000 miles?
Thats only 30,000km or 20,000 miles!

Is that considered excessive, given that most of us live in 'Commuter Belts' which we all know are outside of Dublin, in the surrounding counties.

What impact would this have on the half price rule, if any at all?

Flan45

Another question to throw out there,

Has anyone informed a HP company of your intention to invoke the half rule and enquired if they would be interested in a market value offer for the car.

Presuming the amount remaining on the HP is greater than the value of the car then the hirer is getting a good deal plus the HP company don't have to go to the expense of trying to offload the car in the current environment.

Any thoughts?

Murraydeb

Hi
I've just written to the finance company to return my car to them under the Half Rule. I had a phonecall from them telling me they would send out an assessor before the car was returned and that I had to pay €193 for this assessment. Is this normal? She also wanted to know where I had heard about the Half Rule, if I had sought advice on it and if the vehicle was currently taxed and insured "for the file". It just seemed a little strange. Has anyone esle gone through this process already?
Thanks
Debbie

Our man in Havana

She also wanted to know where I had heard about the Half Rule.

None of their business. Seriously.

Mena

Murraydeb wrote: »

Hi
I've just written to the finance company to return my car to them under the Half Rule. I had a phonecall from them telling me they would send out an assessor before the car was returned and that I had to pay €193 for this assessment. Is this normal?

Afraid so.

Murraydeb wrote: »

She also wanted to know where I had heard about the Half Rule, if I had sought advice on it and if the vehicle was currently taxed and insured "for the file".

They hate it when we as consumers know our rights :P

I got 5 separate calls from them demanding to know where I got this information, as if it was some massive secret...

Murraydeb wrote: »

It just seemed a little strange. Has anyone esle gone through this process already?
Thanks
Debbie

I went through the process earlier this year. Read the whole thread if you haven't, tons of good info here.

Donkey101 wrote: »

Just one other question to throw out there.........

What level of mileage is considered to be 'excess'?

For example, a 5 year old car with 150,000kms or 100,000 miles?
Thats only 30,000km or 20,000 miles!

Is that considered excessive, given that most of us live in 'Commuter Belts' which we all know are outside of Dublin, in the surrounding counties.

What impact would this have on the half price rule, if any at all?

Excess is basically any mileage over and above the agreed annual mileage on your contract. It's usually between 10k and 30k a year. Anything over the agreed amount is charged at the, once again, agreed rate. In my case it was 0.22c per Km if I recall.

Kanana

Is it possible instead of sending a check with the letter to terminate the HP under the Half Rule to transfer some money from your current account to the HP agreement when you haven't reach the Half Amount ?

Our man in Havana

I wouldn't advise it.

Get a bank draft and post it to them with your letter terminating the agreement.

Kanana

Bond-007 wrote: »

I wouldn't advise it.

Get a bank draft and post it to them with your letter terminating the agreement.

Are you sure they will accept that as I haven't reach the half amount at the time I sent the letter?

Donkey101

Mena,

My contract does not specify any annual mileage, it doesnt mention milegae any where in the contract. Whats the position in this case?
Is it the total mileage on the car, divided by the age of the car in years.
(ie) 150,000km divided by age of car (2005-2009), call the 4 years.
= avg 37,500 per year, putting it 7500km over the avg annual of 30,000km.

that would be an extra 30,000km @ .22 of a cent or 22 cent per km.

also, is that 22c a kilometre or 0.22 of a cent per km.

It would make a huge difference in my case

Plus, who gets to decides whats the acceptable mileage if its not specified in the contract.


Quote:
Originally Posted by Donkey101
Just one other question to throw out there.........

What level of mileage is considered to be 'excess'?

For example, a 5 year old car with 150,000kms or 100,000 miles?
Thats only 30,000km or 20,000 miles!

Is that considered excessive, given that most of us live in 'Commuter Belts' which we all know are outside of Dublin, in the surrounding counties.

What impact would this have on the half price rule, if any at all?

Excess is basically any mileage over and above the agreed annual mileage on your contract. It's usually between 10k and 30k a year. Anything over the agreed amount is charged at the, once again, agreed rate. In my case it was 0.22c per Km if I recall.
Last edited by Mena; 20-11-2009 at 16:33.

CJhaughey

Murraydeb wrote: »

Hi
She also wanted to know where I had heard about the Half Rule,

LOL ,just tell them you read the Irish statute book as light bedtime reading.
And the 1946 finance act jumped out at you!

Kanana

Donkey101 wrote: »

(3) - Then cancel my direct debit and wait for them to ring me to arrange dropping off the car.

Is it legal to cancel the direct debit once the letter is sent? Because it makes sense, that, you or I don't want to pay more than the half amount because the bank doesn't reply quickly.

Our man in Havana

Once you have the settlement figure and you have posted the cheque you are well within your rights to cancel the direct debit.

zoemax

Don't know if this has been posted before:

http://www.itsyourmoney.ie/files/publications/p_20080128041858Car%20Finance%20Jan%2008.pdf

Its a guide to HP including the half rule by the financial regulator.

Kanana

It's maybe stupid, but what order should be used for the bank drfat? Is the name of the bank enought or maybe name of the bank + car finance?

HashSlinging

If you've paid a third off your car can you hand it back without signing VSF form.

Our man in Havana

But they will bugger up your credit rating.

Saab Ed

Mena wrote: »

I've done it recently. After paying for my 06 325i for almost three years I decided enough was enough. I'd already gone over the 50% mark.

:rolleyes::eek: Is there any wonder this country is fuc£ed . Enjoy playing the big shot did you. Look at me Beemer. Maybe if you had bought the car your budget could afford in the first place ( along with all the other numptys who bought into the " This is gonna last forever" Bull$hit ) like a 3 year old Micra then we wouldnt have the holes in the economy that we have. Good man, responsible living and all that.

Kanana

Finally the bank made the bank draft directly to the hire purchase "account" on the same day.

I sent them the letter registrered and, the following day (today) they called me to collect the car tomorrow.

I'll do the car assessement tomorrow (the garage told me 102 EUR) and take pictures... to follow...

Donkey101

Hey Kanana,

Are you getting your car assessment done in a main dealer or your local garage?
Are they going to charge you a collection fee for collecting the car?

Am doing the deed next week.
Thanks.

Kanana

Donkey101 wrote: »

Hey Kanana,

Are you getting your car assessment done in a main dealer or your local garage?
Are they going to charge you a collection fee for collecting the car?

Am doing the deed next week.
Thanks.

I did the car assessement in the garage I bought the car (Opel Dealer). They charged me 102€ for 2 hours work. They gave me a mechanic report and top up my level. They called that also a pre-sales test.

For the collection, I don't know. They didn't offered me to drop the car somewhere. 2 agents came to my place with a "normal" car and the second one drove my car.

End of the story (at the moment I'm writing)

PS: Don't forget when you hand back the car to take your insurance disk to cancel the policy. I gave them also the car registration signed at the back

Donkey101

Thanks Kanana,
Was it only 2 days turnaround between sending the letter & them collecting the car?

Did they mention anything about excess mileage, or was that an issue?

I didnt buy my car from a main dealer (2nd hand).
Was the pre-sale test form completed in an official form (SIMI) or Opel?

Our man in Havana

I gave them also the car registration signed at the back

You should have stuck their details on the cert and got them to sign it.

Kanana

Bond-007 wrote: »

You should have stuck their details on the cert and got them to sign it.

Not sure because the bank is not the new owner. It will be the personn who'll win the auction (pretty sure it will go to auction)

Donkey101 wrote: »

Thanks Kanana,
Was it only 2 days turnaround between sending the letter & them collecting the car?

Did they mention anything about excess mileage, or was that an issue?

I didnt buy my car from a main dealer (2nd hand).
Was the pre-sale test form completed in an official form (SIMI) or Opel?

Monday = Sent the letter
Tuesday = Got a call from the bank, wanted to come that day
Wednesday = Collected the car

Didn't mention about the excess. They came, took the key, shake hands, left...

For the assessement I went to the OPEL Dealer (Windsor group) and they filled a service checklist form from Windsor group.

Our man in Havana

They are keen.

Waterserpent

Hi all,

I am planning on utilising the half rule as I have moved to France and as of yet have been unable to find a full time job. Therefore I cannot keep up my payments. Can someone confirm my figures based on the example from 'It's your money' website:

Cash price of car: 22,000
trade in: 4,000
deposit: 3,000
hire purchase price: 15,000
interest: 3,000 or there abouts

So total HP Price is 18,000 (rounded)

So under the half rule per the IYM website I take the 18,000 which is the TOTAL HP price /2 = 9,000

Less amounts paid so far:

9 installments of 300: 2,700
Deposit: 3,000
Trade in: 4,000

Total paid so far: 9,700


Therefore I can just hand back the car with nothing owing.

Thanks

Donkey101

Hi Waterserpent,

First thing is check your HP contract to see if it states a 1/2 Price amount. (mine did)

Based on your figures, your HP is for €15000 plus interest, which you've put at €3000. Assuming that its a 5 year term, thats €300 x 60 months = €18,000, giving you a 1/2 price amount of €9,000, less €2700 already paid, leaving a shortfall of €6300.

You didnt finance the trade-in amount (€4000) nor the cash deposit (€3000). Your HP appears to be based on the balance €15000 (€22000 less €7000 leaving €15,000).

Waterserpent

Thanks Donkey for the quick reply!

I will check the HP agreement later this evenint but for the moment I'm still a little confused! Please take a look at the below excerpts from 'it's your money'. It's seems to be saying you add back in any deposit and/or trade in, I have highlighted that in red.
[FONT=FoundrySans-Bold, sans-serif]Taken from the leaflet entitled "Car Finance" by the Financial Regulator[/FONT]
[FONT=FoundrySans-Bold, sans-serif][/FONT]

[FONT=FoundrySans-Bold, sans-serif]"The following is an example of how[/FONT]
[FONT=FoundrySans-Bold, sans-serif]the usual charges will add to the cost[/FONT]
[FONT=FoundrySans-Bold, sans-serif]of buying a car on hire purchase.[/FONT]
[FONT=FoundrySans-Bold, sans-serif][FONT=FoundrySans-Normal, sans-serif]Joe picks a car that costs [/FONT][FONT=EuroSans-Regular, sans-serif]€[/FONT][FONT=FoundrySans-Normal, sans-serif]13,300 from a motor[/FONT][/FONT]
[FONT=FoundrySans-Normal, sans-serif]dealer. The dealer arranges a five-year hire-purchase[/FONT]
[FONT=FoundrySans-Bold, sans-serif][FONT=FoundrySans-Normal, sans-serif]plan for Joe, and asks for a deposit of [/FONT][FONT=EuroSans-Regular, sans-serif]€[/FONT][FONT=FoundrySans-Normal, sans-serif]400.[/FONT][/FONT]
[FONT=FoundrySans-Bold, sans-serif]The real cost of Joe’s car is the[/FONT]
[FONT=FoundrySans-Bold, sans-serif]hire-purchase price of [FONT=EuroSans-Bold, sans-serif]€[/FONT]16 ,39 0.69[/FONT]
[FONT=FoundrySans-Bold, sans-serif][FONT=FoundrySans-Normal, sans-serif]Cash price [/FONT][FONT=EuroSans-Regular, sans-serif]€[/FONT][FONT=FoundrySans-Normal, sans-serif]13,300.00[/FONT][/FONT]
[FONT=FoundrySans-Normal, sans-serif](This is the cost of the car if Joe[/FONT]
[FONT=FoundrySans-Normal, sans-serif]was paying cash.)[/FONT]
[FONT=FoundrySans-Bold, sans-serif]Less: [FONT=FoundrySans-Normal, sans-serif]Deposit or part exchange – [/FONT][FONT=EuroSans-Regular, sans-serif]€[/FONT][FONT=FoundrySans-Normal, sans-serif]400.00[/FONT][/FONT]
[FONT=FoundrySans-Bold, sans-serif][FONT=FoundrySans-Normal, sans-serif](1) Amount for finance [/FONT][FONT=EuroSans-Regular, sans-serif]€[/FONT][FONT=FoundrySans-Normal, sans-serif]12,900.00[/FONT][/FONT]
[FONT=FoundrySans-Bold, sans-serif][FONT=FoundrySans-Normal, sans-serif](2) [/FONT]Plus: [FONT=FoundrySans-Normal, sans-serif]Interest charge + [/FONT][FONT=EuroSans-Regular, sans-serif]€[/FONT][FONT=FoundrySans-Normal, sans-serif]3,355.20[/FONT][/FONT]
[FONT=FoundrySans-Bold, sans-serif][FONT=FoundrySans-Normal, sans-serif]Total [/FONT][FONT=EuroSans-Regular, sans-serif]€[/FONT][FONT=FoundrySans-Normal, sans-serif]16,255.20[/FONT][/FONT]
[FONT=FoundrySans-Bold, sans-serif]Plus: [FONT=FoundrySans-Normal, sans-serif]Fees[/FONT][/FONT]
[FONT=FoundrySans-Bold, sans-serif][FONT=FoundrySans-Normal, sans-serif](3) Documentation fee + [/FONT][FONT=EuroSans-Regular, sans-serif]€[/FONT][FONT=FoundrySans-Normal, sans-serif]72.00[/FONT][/FONT]
[FONT=FoundrySans-Bold, sans-serif][FONT=FoundrySans-Normal, sans-serif](4) Completion fee + [/FONT][FONT=EuroSans-Regular, sans-serif]€[/FONT][FONT=FoundrySans-Normal, sans-serif]63.49[/FONT][/FONT]
[FONT=FoundrySans-Bold, sans-serif]Hire-purchase price[/FONT]
[FONT=FoundrySans-Bold, sans-serif](1)+(2)+(3)+(4) [FONT=EuroSans-Bold, sans-serif]€[/FONT]16 ,39 0.69[/FONT]
[FONT=FoundrySans-Normal, sans-serif]Joe must pay back the amount for finance plus the[/FONT]
[FONT=FoundrySans-Bold, sans-serif][FONT=FoundrySans-Normal, sans-serif]interest ([/FONT][FONT=EuroSans-Regular, sans-serif]€[/FONT][FONT=FoundrySans-Normal, sans-serif]16,255.20) in 60 instalments of [/FONT][FONT=EuroSans-Regular, sans-serif]€[/FONT][FONT=FoundrySans-Normal, sans-serif]270.92.[/FONT][/FONT]
[FONT=FoundrySans-Normal, sans-serif]He must pay the documentation fee with his first[/FONT]
[FONT=FoundrySans-Normal, sans-serif]payment and the completion fee with his last[/FONT]
[FONT=FoundrySans-Normal, sans-serif]payment."[/FONT]






[FONT=FoundrySans-Bold, sans-serif]"Half rule: [FONT=FoundrySans-Normal, sans-serif]To end an agreement, you must let your[/FONT][/FONT]
[FONT=FoundrySans-Normal, sans-serif]lender know in writing that you are ending it under[/FONT]
[FONT=FoundrySans-Normal, sans-serif]the half rule. Having ended the agreement, you must[/FONT]
[FONT=FoundrySans-Normal, sans-serif]pay half the hire-purchase price, less any payments[/FONT]
[FONT=FoundrySans-Normal, sans-serif]you have made to date (including any deposit you[/FONT]
[FONT=FoundrySans-Normal, sans-serif]paid), and return the car.[/FONT]
[FONT=FoundrySans-Bold, sans-serif]The example below shows how this might[/FONT]
[FONT=FoundrySans-Bold, sans-serif]affect Joe if he ends his hire-purchase[/FONT]
[FONT=FoundrySans-Bold, sans-serif]agreement after two years, or after three[/FONT]
[FONT=FoundrySans-Bold, sans-serif]years.[/FONT]
[FONT=FoundrySans-Normal, sans-serif](1) Half the hire-purchase price of[/FONT]
[FONT=FoundrySans-Bold, sans-serif][FONT=EuroSans-Regular, sans-serif]x[/FONT][FONT=FoundrySans-Normal, sans-serif]16,390.69 = [/FONT][FONT=EuroSans-Regular, sans-serif]x[/FONT][FONT=FoundrySans-Normal, sans-serif]8,195.35[/FONT][/FONT]
[FONT=FoundrySans-Bold, sans-serif]Less: [FONT=FoundrySans-Normal, sans-serif]Amounts paid off to date:[/FONT][/FONT]
[FONT=FoundrySans-Bold, sans-serif][FONT=FoundrySans-Normal, sans-serif]25 payments of [/FONT][FONT=EuroSans-Regular, sans-serif]x[/FONT][FONT=FoundrySans-Normal, sans-serif]270.92 [/FONT][FONT=EuroSans-Regular, sans-serif]x[/FONT][FONT=FoundrySans-Normal, sans-serif]6,773.00[/FONT][/FONT]
[FONT=FoundrySans-Bold, sans-serif][FONT=FoundrySans-Normal, sans-serif]Deposit +[/FONT][FONT=EuroSans-Regular, sans-serif]x[/FONT][FONT=FoundrySans-Normal, sans-serif]400.00[/FONT][/FONT]
[FONT=FoundrySans-Bold, sans-serif][FONT=FoundrySans-Normal, sans-serif]Documentation (or set-up) fee +[/FONT][FONT=EuroSans-Regular, sans-serif]x[/FONT][FONT=FoundrySans-Normal, sans-serif]72.00[/FONT][/FONT]
[FONT=FoundrySans-Bold, sans-serif][FONT=FoundrySans-Normal, sans-serif](2) Total paid so far [/FONT][FONT=EuroSans-Regular, sans-serif]x[/FONT][FONT=FoundrySans-Normal, sans-serif]7,245.00[/FONT][/FONT]
[FONT=FoundrySans-Normal, sans-serif]Amount Joe still owes (1) - (2)[/FONT]
[FONT=FoundrySans-Bold, sans-serif][FONT=FoundrySans-Normal, sans-serif]([/FONT][FONT=EuroSans-Regular, sans-serif]x[/FONT][FONT=FoundrySans-Normal, sans-serif]8,195.35 less [/FONT][FONT=EuroSans-Regular, sans-serif]x[/FONT][FONT=FoundrySans-Normal, sans-serif]7,245.00): [/FONT][FONT=EuroSans-Regular, sans-serif]x[/FONT][FONT=FoundrySans-Normal, sans-serif]950.35[/FONT][/FONT]
[FONT=FoundrySans-Bold, sans-serif]Month 25 : [FONT=FoundrySans-Normal, sans-serif]Joe sends his lender written notice[/FONT][/FONT]
[FONT=FoundrySans-Normal, sans-serif]to end the agreement and arranges to give back[/FONT]
[FONT=FoundrySans-Normal, sans-serif]the car. If he ends the agreement in month 25, Joe[/FONT]
[FONT=FoundrySans-Normal, sans-serif]will have to give back the car. He will owe an extra[/FONT]
[FONT=FoundrySans-Bold, sans-serif][FONT=EuroSans-Regular, sans-serif]x[/FONT][FONT=FoundrySans-Normal, sans-serif]950.35 to bring his payments up to half the[/FONT][/FONT]
[FONT=FoundrySans-Normal, sans-serif]hire-purchase price."[/FONT]

So going by the above my figures work out or am I missing something?

Thanks again.

Donkey101

I'm not sure really (its difficult to say, but if your example is correct - I have done your figures versus JOES.

Joe You
Cash Price €13,300.00 €22,000.00
Deposit €400.00 €7,000.00 (trade in + Deposit)
Finance Amount €12,900.00 €15,000.00
Interest €3,355.20 €3,000.00
Total Financed €16,255.20 €18,000.00
Document Fee €72.00 €0.00
Completion Fee €63.49 €0.00
Total Hire Price €16,390.69 €18,000.00
Monthly Repay €270.92 €300.00
1/2 Price Amount €8,195.35 €9,000.00
Less Money repaid

---

Monthly Repay €6,773.00 €2,700.00
Deposit €400.00 €7,000.00
Doc Fee €72.00 €0.00
Sub Total €7,245.00 €9,700.00
Shortfall €950.35 €0.00

Waterserpent

@ Donkey Thanks again for your reply. I think we get the same result if we follow the example.

Can someone who has recently handed back a car under the half rule confirm this.

cheers everyone.

bigdogbarking

Hi guys, i'm sorry for repeating the same questions over and over but it just seems too good to be true and could easily solve some of my financial woes.(all caused because i was caught up in the hysteria, and believed that we were all rich!!!!) lessons learned the hard way methinks?
anyway,

total hp price was/is 41797
so under the half rule i need to have paid 20989.50?
I just got a settlement figure from PTSB for 25890,
so do i just have to pay 5000 to be able to hand the car back?

Also i lowered payments for 6 months which obviously extended my agreement , does that matter or is the settlement figure inclusive any extra interest?

Thanks guys

s982102

Hi everyone,
Firstly,thanks for all the information given in this forum.
I understand Half-rule a bit more now.

I have a quick question if you don't mind. on what standard does the lender check the car?According to one of the guys said earlier, it seems like they can send a bill with any amount of money that they want. Can they check the car and then I fix it by my own--I mean I find someone to repair it? OR do I have to pay them to repair?

The back door of my car was hit by a human--believe or not.And there are some small scratches around the car.Should I fix it myself before hand it to the bank?I am a bit worrying about after I get it done by myself I still get a big bill from them.

Please anyone can help me.
Thanks.

jimmycrackcorm

This thread should be stickied - it makes it worthwhile to buy a new Alfa :-)

Mena

Saab Ed wrote: »

:rolleyes::eek: Is there any wonder this country is fuc£ed . Enjoy playing the big shot did you. Look at me Beemer. Maybe if you had bought the car your budget could afford in the first place ( along with all the other numptys who bought into the " This is gonna last forever" Bull$hit ) like a 3 year old Micra then we wouldnt have the holes in the economy that we have. Good man, responsible living and all that.

Assumptions are great are they not. I decided to get out of the agreement as the finance was a waste of money. Bought a new car cash after that. Thanks for your concern with my budget though.