Vehicle HP Agreement / Half rule

[Mena]

Quick question I was hoping someone could assist with.

How is the Half Rule affected, if at all, on a vehicle HP agreement when there is a balloon payment at the end of said agreement?

In this case, it's a BMW Select agreement through BMW financial services / Permanent TSB where the agreement has a Guaranteed Minimum Future Value on the vehicle, underwritten by BMW Ireland?

3 Year least with seven (7) remaining payments.

 

[moneyhoney]

The half rule is based on the total hire purchase price, which would include any balloon payment.

So, for example, say the total HP price is €40k, including a €10k balloon payment, you'd have to get to €20k in payments before you could return under the half rule......

 

[Mena]

That's what I thought, many thanks.