Hire purchase cost

genericguy

Hi. My brother bought a car the other day and I think he has rushed a bit. He has bought through hp rather than personal loan but doesn't really differentiate well between them.

His agreement is 1 monthly payment of 420, 34 payments of less (not much less but I can't remember the figure) and another payment of 420 in the last month. There is no mention of a balloon payment but I thought these were standard.

Based on the above can anyone tell me would he actually own the car on that last payment? Or is the car still not his?

Thanks

alan partridge aha

genericguy wrote: »

Hi. My brother bought a car the other day and I think he has rushed a bit. He has bought through hp rather than personal loan but doesn't really differentiate well between them.

His agreement is 1 monthly payment of 420, 34 payments of less (not much less but I can't remember the figure) and another payment of 420 in the last month. There is no mention of a balloon payment but I thought these were standard.

Based on the above can anyone tell me would he actually own the car on that last payment? Or is the car still not his?

Thanks

If it's HP he can't sell the car until he makes the last payment or looks for a settlement figure sometime during the 36 months.

genericguy

alan partridge aha wrote: »

If it's HP he can't sell the car until he makes the last payment or looks for a settlement figure sometime during the 36 months.

Thanks very much - so after the last payment he can sell or trade or whatever? It's not like the finance company says "you've finished hiring now so you have to give us x amount to own it"? I've always used my own bank so I'm ignorant to this.

colm_mcm

Usually thres a documentation fee (63.49?) at the start, and the last payment is slightly bigger as you're essentially buying the car at the end for a nominal amount (like €50 or whatever)
After 36 months, the car is then his.

Also, it's a bit late for regrets, as he would have waived his right to a 14 day cooling off period when he signed the docs.

genericguy

colm_mcm wrote: »

Usually thres a documentation fee (63.49?) at the start, and the last payment is slightly bigger as you're essentially buying the car at the end for a nominal amount (like €50 or whatever)
After 36 months, the car is then his.

Also, it's a bit late for regrets, as he would have waived his right to a 14 day cooling off period when he signed the docs.

Ah right. Cheers. I just though for a minute that he didn't actually have any rights to the vehicle after the final instalment. He was just panicking I think because one of his friends fecked up and made some bad decision or other. I appreciate your help.

colm_mcm

The documents he signed (which he would have a copy of) are very clear as to what the craic is re ownership, cost of credit etc.