# HP and the Half Rule



## aamstudent (22 Feb 2009)

Hi, 
I have some questions on the half rule in relation to hire purchase.
From the itsyourmoney website I can see that I "must, by law, pay half the hire purchase price, less the total of your payments to date."
First Question.  What is the "hire purchase price".  Is it the amount initially advance to purchase the car or the total value of the full repayments? I suspect its the total of the repayments.
Second Question.  If I invoke the half rule, having paid half the purchase price, does this have any effect on my credit rating?
Thanks for any help.


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## moneyhoney (22 Feb 2009)

aamstudent said:


> First Question.  What is the "hire purchase price".  Is it the amount initially advance to purchase the car or the total value of the full repayments? I suspect its the total of the repayments.
> Second Question.  If I invoke the half rule, having paid half the purchase price, does this have any effect on my credit rating?
> Thanks for any help.



1. Yep - the HP price is EVERYTHING you would have paid if you'd made all repayments & paid all charges at start of agreement. The HP price should be on your contract. 

2. No. It's a right under Consumer Credit Act BUT you have to tell them in writing that you are returning the car under the half rule and don't sign a voluntary surrender form.


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## aamstudent (22 Feb 2009)

Thanks.


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## sinbadsailor (19 Jul 2010)

*AIB HP Contract & Half Rule*

I've looking through my HP contract for my company commercial vehicle from AIB under half rule to see if I can avail and I find not mention of a half price, and references to ending the agreement seem to discuss surrender and liability for all remaining monies.

I have passed the halfway point in the payments

There is also one line that goes like follows "...clauses (where applicable) under the 1980 Sale of Goods act are expressly excluded..."

Does that mean that I have a contract that has taken out my right to return under half rule?

So, has anyone a) returned a vehicle under half rule to AIB Finance and Leasing lately or b) does anyone know the ins and outs of their HP contracts for business commercial vehicles

Thanks in advance


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## z104 (19 Jul 2010)

I don't think the half rule applies to company vehicles


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