With rental sale (HP), you can return the car before the advance if you have already paid at least half the fee or if you have the difference between what you have already paid and half the fee. If this third-party rule is violated by the owner, the consumer is allowed to terminate the contract and may demand a refund of all payments made. For more information on a third of the rule, visit the Competition and Consumer Protection Commission website. You can talk to an advisor if your agreement is not covered or if you are not sure – contact your nearest citizen council. Since companies lose money if you terminate contracts prematurely, this means that they are often not very favorable if you want a voluntary termination. You might want the process to last as long as possible. Leasing (HP) is a type of credit that is often available from car dealerships. It can give you the convenience of sorting your finances and choosing your car in the same place. As part of an HP agreement, you rent the car, pay an agreed amount usually in monthly refunds and will at the end of the agreement be the rightful owner of the car. The rightful owner of the car is the financial company that gave you the money to buy the car, and you cannot sell the car without the permission of the financial company. If you use voluntary termination to terminate your contract, you can simply sign the car with the financial company and leave. During the agreement, you can use the car, but the financial company does own it.
You`re the landlord, and you`re the tenant. The financial company can repossess the car if you fall back into airtime with your payments. At the end of the agreement, the financial company entrusts you with ownership of the car, provided you have made all the refunds. If you pay the amount of compensation, the car belongs to you and you do not have to make any other payments. Make sure the value of your car is less than the amount owed in the financial sector. You can verify this by providing an engine evaluation report on Motorcheck.ie. If it is worth more than is due, just sell it and settle the financing with the product. But if it`s worth less than you owe, and if you`ve paid more than half your rental price and feel like it`s better without your car and without the financing — the «half rule» could be exactly what you`re looking for.
If you have a question about the «half rule,» feel free to leave a comment on our blog on www.motorcheck.ie/ blog. Check your financial agreement to see if payment protection insurance (PPI) has been added.