"Half rule" hp agreement

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.