# half rule car finance



## macflea (9 Mar 2009)

hi guys,

some information for ye guys thinking about returning a car under the half rule in the hire purchase , rang bank today and was told this half rule only applies to consumer car finance on a car and not for a commercial hp finance on a van, was told i had a unregulated business hire purchase agreement so not entitled to use the half rule to return the van, so basically stuck with it. was told only way out is private sale.
i have been on the banks website and it does not go into details about different hire purchase agreements .
have i been told the right info by the bank or where can i look for more info. might ring financial reg tomorrow , any one with experinace of this ?
cheers macflea


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## aamstudent (10 Mar 2009)

The first rule is to see what your hp agreement says.  
If you have not got a copy then ask your bank for one.

I would think that consumer protection legislation will not apply to a business lease hire.  So was it a personal lease?  Who was the lessee - a business or a private individual?
Did the bank understand that it was to be used in a business or privately.
Where were the repayments paid from - a business account or a personal account.

If it has a clause that allows you terminate after half of the hire purchase prices has been paid then you seem to be ok.
Watch the banks.  They may try to get you to sign a voluntary surrender rather than a termination.
The financial regulator gives good support.


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## macflea (10 Mar 2009)

hi, amstudent

i am a self employed person paying through my personal account, i was told it was an unregulated business hire purchase agreement and that a half rule does not exist. i read through contract its very vague no mention of half rule in it or any other suggestions of how to terminate agreement if i want to.
macflea


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## aamstudent (11 Mar 2009)

It will not necessarily say "half rule".
Does it say something like "  The Hirer may put an end to this agreement by giving notice of termination in writing to any person who is entitled to collect or receive the hire-rent"  and are there any conditions on amounts to be paid etc.
Have someone look at the agreement for you or else ring the financial regulator and ask for their help.
Without knowing whats in the agreement its hard to know what to advise.


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