"Half rule" hp agreement

eok56

As per the Hire Purchase Act 1946 it is half the Hire Purchase Price that is referred to in the half way clause.
I think that means that it is half the €16,569?? (Sept 09 Baby)

I am kind of in the same position (well a little worse--I'll explain soon)

Looking at my credit agreement with PTSB finance.

Cash Price (A) = €12000
Deposit/Trade in = €3000
Total amount for finance (B) = €9000

Interest Charge (C) = €1656
Document fee (D) = €75
Hire Purchase Price = A+C+D+E = 13781

Then in the Statutory notices there is the following points:
1) The hirer may put an end to this agreement by given notice of termination in writing to any person who is entitled to collect or retrive the hire/rent

2)The hirer must then
A) i) Pay any installements which are in arrears at time he gives notice and
ii) if when the hirer has paid these installments the total amount under the agreement is less than €6890 the hirer must also pay enough to make up that sum or..

(it goes on to say purchase the goods in full etc..)

On my HP agreement as of next week I will have €5383 paid just over €1500 short of the required figure!!


Anyway my stupid stupid story!!!

In stupid misjudgment in Aug 2008 I purchased a car (04 Ford Mondeo) on HP for my then boyfriend ( he couldn't get any finance). We split up in October, one payment down 48 more to go !!
Well after alot of arguing he has been paying up, but problem is after arising, he is after getting caught for the bag , TWICE!!! God only knows what his punishment will be but certainly a driving ban for a few years!!
Anyway the payments are starting to cease again, and I need to do something urgently, I can barely keep my head above water with my own financial commitments!
So have to work something out, I'm thinking I will get the car back from him and park up my own (08 ford Focus) until I have reached the half way point and save on wear and tear, tyres, servicing, milage, etc on my own for a few months and then hand back his car? It will be a very tough few months but hopefully I will manage!!

Any advice, open to all suggestions.

alb1978

Hi guys - thank you for all the great advice.

I am planning on using the half rule soon but have some concerns on wear and tear. Nothing majorly wrong bar the odd scratch from car parks and stone chips etc? And in relation to milage has anyone had any issues?? I have 105k km now on an 07 however there is nothing in the agreement about milage. Am just at the half way point well will be with one more payment but that would leave me owing 20k but I reckon you would be lucky to get 10 k for the car? Are the bank likely to go after me on milage and if so is there anywhere which states what is the amount I am entitled to? I had read it was .22 cent for every km over the average amount ? In that case u could still have to pay 10k so would be better off just holding onto the car???

Any thoughts ??

As I said nothing in the hp agreement on milage?

LeahBaby

Plan on ringing about this tomorrow. I have a 05 nissan primera and my finance was €18800. I passed my half mark of €9400 earlier this year. I haven't drove the car in months as I can't afford the tax,insurance and petrol!
So im gonna write the letter to aib. The car is in great nick. Battery might be flat is all.

My question is what will i have to pay when i do this?do i have to pay the reminder of the loan after they auction the car? My car is only prob worth 4k and i owe 8.5 and i cant afford the payments anymore so i have to do something

Yawns

What ever you do, do not sign a surrender form. Ring them and explain that you want to use the half rule clause. They may tell you they don't know about this, but at this stage with everything going on, they do know. Arrange a date and time for yourself to drop the keys etc off with a contact for them.

If you sign a voluntary surrender form you may be liable for balance remaining after auction. Do not sign. Make sure to read everything they send you. You will have to charge the battery or get a new one. Wear and tear is acceptable but it must be in full driving order. No harm getting someone to check it over and getting the all clear as they will inspect it and chase you for repairs.

LeahBaby

Yawns wrote: »

What ever you do, do not sign a surrender form. Ring them and explain that you want to use the half rule clause. They may tell you they don't know about this, but at this stage with everything going on, they do know. Arrange a date and time for yourself to drop the keys etc off with a contact for them.

If you sign a voluntary surrender form you may be liable for balance remaining after auction. Do not sign. Make sure to read everything they send you. You will have to charge the battery or get a new one. Wear and tear is acceptable but it must be in full driving order. No harm getting someone to check it over and getting the all clear as they will inspect it and chase you for repairs.

Thanks yawns,

Yeah after reading this thread I have absolutely no intention of signing anything. its actually in my fiancees name so hopefully he doesnt cock it up lol!!!

Just looked for a new van for him 06 fiat doblo for 2750. happy days

Yawns

Just gently remind him as all women do...

nag nag nag


Don't forget about the commercial tax nowadays

Just make sure to read everything carefully. People who gave their cars back under the half-rule have reported being sent the surrender forms in post before & after the car was given back. Once you sign it they'll hold you to it.

quikquest

Hi,

Im planning on giving back my car via half rule. i have a 08 passat and an 03 passat. Im thinking of swapping the alloys ( just got new tyres for the 08) - would they know this? do u think its possible to get away with it?

Thanks

LeahBaby

car went back today after posting my letter to the bank on tuesday happy days. Didn't sign a thing. Am expecting a bill for a valet but have a noose off my neck

bigdogbarking

I handed my car back a few months ago but since then i have recieved fines from e-toll for the car passing through the toll on the m50 and have recently recieved a letter from the tax office stating my tax has been out of date from july! What do i do here, i'm assuming the car hasn't been sold as the car hasn't been re-registered so obviously someone at the bank are using it.

Has anyone had similar experiences? what actions did you take?

Yawns

Inform Gardaí that the car has beened handed back several months ago. Show any proof. That should help for a start. Do not pay any fines, let it go to court and show judge proof of car being given back if you must.

Ring Shannon and inform them that the car is no longer in your hands. Not much they can do. Once you can show a judge you tried to inform the Gardaí you weren't responceable for fines nothing should happen. Go to bank and talk to manager and give him the fines

Yawns

Oh and ring e-toll.

Basically it's out of your hands and nothing for you to worry about. Just protect your own arse by informing Guards. You may have to go to court if it's a gardaí issued fine but as long as you can prove you gave car back then there will be no prob.

Just inform e-toll that the bank have the car now and if they'd like to redirect their fines to the bank

DCOR

i handed back my car under half rule in august and i have received 3 etoll invoices so far .first of all ring etoll and tell them the story , they will put an "under dispute "flag on your invoice no.Now ring the road tax office ,tell them the story and they will send you out a statutary declaration form which you sign saying you no longer own car and you get it stamped by solicitor..from the time they receive the form back you are no longer the registered owner. hope this helps.Best of luck

bosun1

Planning on handing back my car under the half term rule. Its only 4 years old but theres a few dents in the body work, nothing major though. Should I go and try have them repaired or will it be ok to hand back the way it is?

capital1

i was thinking of doing this as well-get to the half way point early next year.

Checked my docs and it has the statutory notice stating i can hand it back.

I phoned PTSB today and made equiries about returning. Rep said I couldnt do this as it was on the BMW select plan whereby the car goes back to the garage rather than the finance company. I queried it stating my agreement states I can-she said she'd get someone to give me a call back-guess what they didn't.

I realise the finance companies dont want people to return the cars so it could well just be a standard response. Anyone else dealt with the select plan?

Cheers

chris85

capital1 wrote: »

i was thinking of doing this as well-get to the half way point early next year.

Checked my docs and it has the statutory notice stating i can hand it back.

I phoned PTSB today and made equiries about returning. Rep said I couldnt do this as it was on the BMW select plan whereby the car goes back to the garage rather than the finance company. I queried it stating my agreement states I can-she said she'd get someone to give me a call back-guess what they didn't.

I realise the finance companies dont want people to return the cars so it could well just be a standard response. Anyone else dealt with the select plan?

Cheers

is this a buy-back lease you got? Where by at the end of the agreement you hand back the car?

capital1

i have three options. 1. I can pay a balloon payment and the car is mine 2.I could just hand the car back. 3. I could use it for a part exchange if there is equity in the car.

cheers

Drummerboy08

Are you sure its a Hire Purchase agreement and not a Contract Hire agreement you've signed up to? They are very differenyt finance packages.

capital1

well the docs from PTSB state its a consumer hire purchase agreement so i assume it is.

i have the right to purchase the car at the end of the agreement or hand it back...

Drummerboy08

capital1 wrote: »

well the docs from PTSB state its a consumer hire purchase agreement so i assume it is.

i have the right to purchase the car at the end of the agreement or hand it back...

No, under a Hire Purchase agreement once the final payment is made then the car is legally yours.

It sounds to me as though the dealer in question has added a balloon payment at the end of the contract - while this makes your monthly rental lower, it means that you will more than likely never own the car unless you're willing to pay the balloon cost, which could be more than the car is worth.

If I were you I'd get onto MABS. They'll set you right.

capital1

i have the option of paying the balloon payment at which point the car will be mine or I dont pay it and walk away-if I dont think the car is worth that then I wont pay. You are right in that the balloon cost reduces the monthly payments.

I still come back to the point that the agreement states its a hire purchase agreement and as such am I allowed to use the half rule point.

I'll check with MABS as you suggest.

Millie77

Hi everyone,
Read an article the other day about the Half Rule and looking at returning the car, we've just reached half way amount I think. There is nothing in our contract telling us half the amount like was mentioned. Just wondering has anyone returned a car to 'GE Money' using the half rule? And if there was a clause in our contract (nothing I can see though) would the law overwrite the contract? Thanks.

capital1

just to let you know I spoke to PTSB and they have agreed to take the car back under this rule-happys days

surfbuddy1

My father died a month ago and left behind a car he had taken bought on hire purchase with credit opel – Permanent TSB 2 years ago The hp cash price was 18000, he part exchanged and paid cash to the value of 9000 & 10 months ago started to pay 250 euros /month over 36 installments. Can we contact the hire purchase company and enforce the half rule? Waiting for probate will take some time and we are afraid to contact the hire purchase company in case they just repossess the car and we are liable for the outstanding 8000 euro debt. Please help!!

Motorcheck

Hi there, I was sorry to read about your loss and I'm sure the last thing on your mind right now is your Dad's car.

Because your Dad put such a large deposit on the car I don't think the half rule will be any use to you. You'll probably find that the car is worth more than what's outstanding in Finance. Have you contacted the bank and asked them what's owing?

If you'd like any help getting a current value feel free to PM me the reg and mileage and I'll generate a Motorcheck value for you.

Regards,
Shane.

Yawns

Sorry to heaqr about your father. Seeing as he has passed away, would that not mean that the hp would be voided and they would take the car back and you would not be left with any debts?

Our man in Havana

The estate of your late father would be liable for the debts, not you.

michael morris

Hi All, my first post!. I have a van on lease purchase with Ge and was hoping to invoke the half rule due to the climate at the moment. I rang the company to be told that this wouldnt apply for me because I have a NON CONSUMER lease purchase which is added news to me. I checked the lease and no where does it mention these words. Clause 18 does state that the agreement is governed by irish law!!!!. Do you think Im just being fobbed off???

Our man in Havana

Was it for business use?

ffocused

I am in the process of handing back my car under half rule, I got a letter yesterday. They want me to sign a form that states

'I........ Agree to surrender the above vehicle to lombard ireland ltd. I am aware that by signing this document I am handing over my vehicle and am not liable for any further costs'

It seems fine, but I am unsure as surrendering the vehicle is not the same as a half rule return...should I sign it or wait and see what happens. The cover letter states that I am returning it under the half rule & an agent will contact me to arrange collection of the car.

Our man in Havana

Do not sign the letter. They will class it as a voluntary surrender and stick it on your credit rating.