Half Rule for Hire Purchase?

TimAllen

Just saw someone posting on this thread:

http://www.boards.ie/vbulletin/showthread.php?t=2055490126

Can anyone tell me if this "half rule" in HP is for real? The OP seems to suggest that you can get away with only paying the bank back half of what you owe them! Is this right?

pigeonbutler

I think it's correct. Bear in mind it'll only apply to a hire-purchase agreement.

A secured loan (e.g. car loan obtained from the bank) and a HP agreement isn't the same thing. One defining feature of a HP agreement is that the purchaser doesn't have legal title until they've made the final payment.

Mena

Yep it's right. This document explains it a little more.

falteringstar

I'm looking into this myself at the moment because I cant afford my car payments anymore.

Under the Half Rule you wil have to give the car back, you cannot keep it... which is ok for me because I intend to give it back.

Just make sure they dont demand any more.

Flan45

Hi,

Has anyone used the half rule? If so were there any problems?

cogITere

You can terminate a (consumer hire purchase) agreement at any time by either settling the deal (pay in full) or using the "half rule". Neither method will affect your credit rating.

Half Rule:
Pay half the amount of the total hire purchase price* (if the total of instalments already paid have not reached that amount) and return the goods to the Bank. If the goods in question are damaged in any way (excess mileage, excess wear & tear, crashed, etc), you will be liable to pay the difference between reasonable market value and price asset sold for.

* check your agreement as total hire purchase price does not always equal half your instalments, can sometimes be more and a lot of times be less (if deposit / upfronts payments made).

Once upon a time your credit rating was flagged of the Voluntary Termination (VT), but no more. When you clear your loan through this method, a Clear (C) code will be the last profile on your rating.

"NOTE, if you (have been) in arrears and reported as such with the Irish Credit Bureau, these codes will remain but the act of VT will NOT in any way affect your credit rating."

Lawdie

Mena wrote: »

Yep it's right. This document explains it a little more.

That link is really excellent Mena and should tie off most threads on this topic (Hire Purchase Half Rule, returning of vehicle).

odc

i am looking at availing of this half rule, i am over half way paying back a car i got three years ago, it was three years old when i got it so am just wondering how strict they will be over the condition of it,there are a few small things to be done and its well over 100,000 miles. surely they cant expect it to be in an "as new "condition. thanks in advance for your opinions or experience.

chris85

odc wrote: »

i am looking at availing of this half rule, i am over half way paying back a car i got three years ago, it was three years old when i got it so am just wondering how strict they will be over the condition of it,there are a few small things to be done and its well over 100,000 miles. surely they cant expect it to be in an "as new "condition. thanks in advance for your opinions or experience.

normal wear and tear is fine. they would accept resonable milage and wear and tear. you can get an independant accesor to accessor your vehicle yourself if you want honest independant advice. 100k miles is ok if its an 8-10year old car as normal use is about 10-12k miles a year, any younger a car i would be worried about the condition, yours has done just over 16k miles a year which is higher than average so watch out for this.... yours is six year old . also exterior, interior and mechanics should be in good condition.

Bankguy

Once again a very useful reference point saving me time checking this query out - many thanks!

niallers1

What role does the assessor have..Is it to give a valuation on the car or is it to estimate the cost to bring it to a new condition.

Surely a 5/6 year old car would not be expected to be in perfect as new condition.

What happens if you do not agree with the assessors report?

chris85

niallers1 wrote: »

What role does the assessor have..Is it to give a valuation on the car or is it to estimate the cost to bring it to a new condition.

Surely a 5/6 year old car would not be expected to be in perfect as new condition.

What happens if you do not agree with the assessors report?

resonable wear and tear is fine. a 5/6 year old car would not be needed to be a new condition but a resonable condition for a 5/6 year old car.

The assessor is there to see if there is anything wrong with the car. And may provide price for repair.