half rule hire purchase

poppies1972

Hi, I purchased a car in 06 on hire purchase. I have a balloon payment due in Dec of €25000. I am not in a position to pay and would be mad to refinance on a car thats after depreciating in value so much also they are looking for more in repayments than i am currently paying which i am struggling with already due to changes in financial situation. Thanks to people posting on boards.ie i learned about the half rule. I have written to the bank last Friday telling them i wish to return under the half rule. I just wanted to know from those of you who have done this - what can i expect now? Did the banks try to tell you you were wrong? How long will it take for them to to collect the car? How were you treated? Did you get caught with hidden charges? I am getting an ATA registered mechanic to check the car over before returning it. Do i need to be aware of anything else? Thanks so much for any advice.

poppies1972

also there is no mention of excess mileage in my agreement - do i still have to pay - there is 80k on the car. I am thinking of consulting a solicitor on this.

Senna

poppies1972 wrote: »

I am thinking of consulting a solicitor on this.

Probably would be good advice if the previous thread on the half rule didn't cover it. From memory, the banks assessor will go over the car with a fine tooth comb, so be prepared for him to find something wrong. I wouldn't be too bothered about getting a mechanic to check it over, unless there is something noticeably wrong with the mechanics of the car, it could incur extra expense that the bank might not pick up on anyway.

Lawdie

When returned the rule is based on fair wear and tear. This means average industry usage of the vehicle i.e. car buyers guide mileage (CSPG). If the mileage is above industry average you will be asked to pay for the amount over. This is based on the CSPG rules.

In relation to condition you will be asked to pay for any damage that is not fair wear and tear. So if theres a dent expect to be billed. Also I would suggest to return the vehicle clean (inside and out).

hope this helps.

Most general solicitors haven't got a clue on this area and will read the consumer credit act 1995 the same as you. Unless you get someone who specialise with car finance companies of course.

poppies1972

In case anyone is thinking of returning their car under the half rule i just want to let you know how it went for me after - I sent a letter to the bank telling them i wished to return my vehicle under the half rule. I received a phone call asking me to reconsider and if i wished to refinance. I declined as the car had depreciated so much that it wasn't worth refinancing. I stood my ground and told the lady on the phone (who was very pleasant i have to add!) that i wanted rid of the car. She informed me that an assessor would call to view the car. I got the car checked out by my own assessor - motor check.ie €199) The only thing they found was a crack to the windscreen and some minor wear and tear scratches. I got the windscreen replaced through my insurance. Less than a week later the assessor called. He picked up on the minor scratches and said he would put that in the report - he found nothing else wrong and i was very annoyed as the car is four years old and i told him it was unresponsible to expect it to be in show room condition. Anyway, it took him about a week to return the report to the bank. I rang to hurry it on as i wanted to whole matter resolved before xmas as i didn't want it on my mind over xmas. I received a call from the lady at the bank to say she received the report and that they only thing was the paintwork to the bumper and that the cost of repair and the report was under €600! I paid the€600 direct to the account. She told me not worry that my credit rating wasn't affected. She advised me to return the car to the dealer and that it would be collected from there. I did the following day and took photos of it inside and out. I returned the keys to the finance guy at the dealer who was totally unphased (must be happening regularly i thought!) I received a receipt for the car and that was it! So all the sleepless nights and worry was for nothing. I have to say the whole thing went without a hitch, the lady in the bank was nothing only helpful and pleasant. I felt i should let you know this as we often read only the negative things on the net. Best of luck to anyone doing the same thing.

rugbyman

I found your info interesting.
Would you care to say how much the car was new, how much you had paid to the bank , deposit if there was any, and your estimate of its value at the time of handing back.

Also was it on hire purchase or lease?

regards Rugbyman

though i run a banger myself I find info like this and more so on housing very informative.