P
Peter W
Guest
Hi
Did the following with a car dealership
Purchase price on car 27k
Deposit paid 9k
Amount funded through Hire Purchase 18k
Since taking out the HP agreement on the 18k, i have entered into an annual agreement paying a fixed amount every month with a balloon due on in the 12th month. In the past, when the balloon falls due i simply roll into another 12 month agreement with a different balloon at the end.
This year, the HP company won't let me do this, insisting instead that if i want to avoid the balloon payment I must roll into a standard car loan agreement with a series of fixed payments over a number of years.
Qs:
1. The total due now on the balloon 12k. Do I qualify for the "half rule?"
2. If so, does that mean I have the right to give them back the car and have no further obligations under the agreement?
3.If they force me into a car loan arrangement now, does that mean I have given up the option to put the car back to them with no further obligations?
4. Is there any way I can retain that option (to give the car back) in a new agreement?
I understand that not paying the balloon now and refinancing means I will pay far more interest over the term or that if I did give the car back under the "half rule" I would effectively have nothing to show for my deposit and HP payments to date, but I need to retain the flexibility of being able to give up the asset and walk away from any future payments.
Any advice would be great
Did the following with a car dealership
Purchase price on car 27k
Deposit paid 9k
Amount funded through Hire Purchase 18k
Since taking out the HP agreement on the 18k, i have entered into an annual agreement paying a fixed amount every month with a balloon due on in the 12th month. In the past, when the balloon falls due i simply roll into another 12 month agreement with a different balloon at the end.
This year, the HP company won't let me do this, insisting instead that if i want to avoid the balloon payment I must roll into a standard car loan agreement with a series of fixed payments over a number of years.
Qs:
1. The total due now on the balloon 12k. Do I qualify for the "half rule?"
2. If so, does that mean I have the right to give them back the car and have no further obligations under the agreement?
3.If they force me into a car loan arrangement now, does that mean I have given up the option to put the car back to them with no further obligations?
4. Is there any way I can retain that option (to give the car back) in a new agreement?
I understand that not paying the balloon now and refinancing means I will pay far more interest over the term or that if I did give the car back under the "half rule" I would effectively have nothing to show for my deposit and HP payments to date, but I need to retain the flexibility of being able to give up the asset and walk away from any future payments.
Any advice would be great