"Half rule" hp agreement

tommyhaas

@Yawns, yea thanks for that, just wanted to clarify

Motorcheck

Well you could also take the view that if you're car is now only worth 15k and you still owe 20k by returning it under the half rule you're actually ridding yourself of 5k in negative equity. Good riddance!

sinbadfury

Anyone returned under Half Rule to AIB Finance and Leasing, specificaly for a company commercial?

Trying to decipher my agreement at moment and can only really see line like "..clauses (if applicable) under the sale of goods acts 1980 are expressly excluded.."

Our man in Havana

The half rule does not apply to comericals or businesses.

bigdogbarking

I availed of the half rule and as of last week i am now big expensive car free!!!! took over 2 weeks to sort everything out but its done and dusted and completely stress free.feel free to Pm me if anyone needs help with it

sinbadfury

Haddockman wrote: »

The half rule does not apply to comericals or businesses.

Any detail on why this is? As if I can confirm this for certain then that rules out a change for me, which is a pity, I need a car for work now.

Our man in Havana

Consumer credit law don't apply to businesses or companies, only agreements where private persons are involved.

Who took out the HP on your car? You or the company?

sinbadfury

Haddockman wrote: »

Consumer credit law don't apply to businesses or companies, only agreements where private persons are involved.
Who took out the HP on your car? You or the company?

Single man company so the vehicle is registered to the company with myself and on other listed as directors & guarantors for the agreement. Company accounts pay the monthlies

Our man in Havana

Then you are out of luck.

sinbadfury

Haddockman wrote: »

Then you are out of luck.

So in the event of needing to hand the 4x4 back in order to replace with something that can take a baby seat (reason for asking), I'm looking at paying off the remainder of balance of the agreement.

Is a credit rating affected in this case, regardless of if you are clearing monies owed, based on the fact that you are terminating an agreement early?

Thanks!

Our man in Havana

If you terminate early and pay up all monies your credit will not be touched. A voluntary surrender would be recorded on the ICB. If you are indeed a proper company and not a sole trader it won't affect you personally. The term "one man company" usually means sole trader and not a body corporate as defined by the companies acts.

Your problem here is that businesses and bodies corporate cannot avail of laws intended to protect the private person.

sinbadfury

Haddockman wrote: »

If you terminate early and pay up all monies your credit will not be touched. A voluntary surrender would be recorded on the ICB. If you are indeed a proper company and not a sole trader it won't affect you personally. The term "one man company" usually means sole trader and not a body corporate as defined by the companies acts.

Your problem here is that businesses and bodies corporate cannot avail of laws intended to protect the private person.

It is a limited company with myself and another as directors. Thanks for the info, we'll have to see what we can do with regards the vehicle. I must admit it was short-sighted of me not to think of the kiddies requirements in a four year period. I've learned a lot about the pitfalls of HP...

kingofthekop

Seriously Considering doing this. Driving a Kia Rio 07. Have it for 2 years of a 5 year agreement which totals 18kish (including interest). This is scandelous as the valuation of the car has dropped from 13k to about 8k at the moment. I still owe 12kish. From my calculations I will owe them about 2,800 to hand it back.

My Questions are

1.Has anybody used the half rule with GE Money? How did it go?

2. I was driving out of the drive a few weeks ago and my niece opened the back door onto the gate causing a scratch and a slight dent. So should I repair it or let it go through the half rule and hope for the best?

P.S. I can afford the repayments but we are in the process of applying for a mortgage and I would prefer to pay cash for a car and use the €300 a month i was paying to GE towards trying to get a decent house. I think its money better spent.

Any advice would be very helpful.

savic04

if you are applying for a mortgage and you havent drawn down on it yet, dont do Half rule, as it will mess up your credit rating

kingofthekop

savic04 wrote: »

if you are applying for a mortgage and you havent drawn down on it yet, dont do Half rule, as it will mess up your credit rating

After reading through all the posts on this site and from looking at post from people who have done the half rule and requested their credit rating, it seems that their creit rating was not affected

Our man in Havana

It will not be affected so long as you do not sign a voluntary surrender. Many lenders will try and trick you into signing such a form.

Mena

savic04 wrote: »

if you are applying for a mortgage and you havent drawn down on it yet, dont do Half rule, as it will mess up your credit rating

No it won't.

Haddockman wrote: »

It will not be affected so long as you do not sign a voluntary surrender. Many lenders will try and trick you into signing such a form.

Correct!

Yawns

+1

Pdecky

What about if you are a sole trader can I still avail of the "Half Rule" clause? Any other person trading as a sole trader avail of this clause. As I have a machine with GE finance with more than half the finance paid on it. If so I would like to know how you got on with GE !!

Our man in Havana

It would depend if you agreement has that clause in it.

Pdecky

As a sole trader I signed my name to it in the Rental agreement it states as follows " The renter understands and acknowledges that in entering this agreement the renter does not have the rights of a consumer under the consumer credit act 1995 by reason of the fact that the renter is not a consumer and is acting within a trade, business or profession"

What do think you think? Should I go to my solicitor?

Our man in Havana

Well then the half rule does not apply.

sept09baby

Trying to figure out if I'm eligible for this and the maths just isn't adding up. Can't figure out the interest charges etc

This is what is has on the agreement:

1) Cash Price 14,000
Less Deposit 5,500
Balance of Cash Price 8,500

2) Total Amount for Finance 8,500
3) Add Interest 2,419
4) Documentation Fee 75

Balance of Hire Payable (2+3+4) 10,995

5) Completion Fee 75

Hire Purchase Price (1+3+4+5) 16,569


The settlement figure is currently 6,226. When would I be eligible for the 'Half Rule'? When half of the 10,995 has been paid?

Pdecky

Thanks for the feedback Haddockman

chris85

Pdecky wrote: »

As a sole trader I signed my name to it in the Rental agreement it states as follows " The renter understands and acknowledges that in entering this agreement the renter does not have the rights of a consumer under the consumer credit act 1995 by reason of the fact that the renter is not a consumer and is acting within a trade, business or profession"

What do think you think? Should I go to my solicitor?

If you got a vehicle as a sold trader than you would have got a non-consumer (or commercial) higher purchase agreement and are not covered by the consumer credit act and thus the half rule does not apply. You cannot get a consumer loan/finance for business purposes.

You are not a consumer in this instance, you got a commercial agreement and thus are not afforded the rights of the consumer credit act here.

Pdecky

Thanks for the reply. Out of luck so I guess.

chris85

sept09baby wrote: »

Trying to figure out if I'm eligible for this and the maths just isn't adding up. Can't figure out the interest charges etc

This is what is has on the agreement:

1) Cash Price 14,000
Less Deposit 5,500
Balance of Cash Price 8,500

2) Total Amount for Finance 8,500
3) Add Interest 2,419
4) Documentation Fee 75

Balance of Hire Payable (2+3+4) 10,995

5) Completion Fee 75

Hire Purchase Price (1+3+4+5) 16,569


The settlement figure is currently 6,226. When would I be eligible for the 'Half Rule'? When half of the 10,995 has been paid?

yeah half the €10995 as its the total cost of the finace you got. as long as all payments you have made are over half this and you aint in arrears you can do a voluntary termination under half rule.

Alanstrainor

Forest Master, Chris85,

Everybody hates the grammar police. Leave it out. I've deleted the off-topic posts.

sept09baby

chris85 wrote: »

yeah half the €10995 as its the total cost of the finace you got. as long as all payments you have made are over half this and you aint in arrears you can do a voluntary termination under half rule.

Thanks for clearing that up. Having one of those days and just couldn't figure it out

the bigsliothar

thinking of handing back a landrover on the half rule to ge money as they refuse to let me lower payments for a couple of months,the problem is the jeeps body has got a bit tatty over the years and i,m not really in a position to get it cleaned up at the moment,the jeep has a new nct and is mechanically sound,anybody hand a car/jeep back recently have any advice??