The rental purchase is available for amounts in excess of 10,000 euros with a fixed interest rate of 8.45% APR (based on a typical 4-year agreement). 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 have decided that you no longer want (or need) your car, the first thing you need to do is know how much it will cost to make it. To do this, you need to know the original “rental-sale” price of the car, which appears on the HP contract you signed. If you don`t have a copy at your fingertips, you can receive it from the bank by calling customer service (you`ll need the car registration number or financial contract number if you have it). Once you have the “rent-buy” amount, just divide it into two parts. This number is the amount you owe (or have paid) to return a vehicle according to the “half rule.” After that, knowing if you qualify is easy. Simply multiply your monthly payment by the number of payments you have already made to the Bank (remember to include all advance payments and documentation fees). If it`s more than half the rental price, qualify.
If it`s less – don`t worry, you can still qualify, but you have to pay only one payment to the bank, which brings you to half the mark. The interest rate on HP agreements varies among financial companies. Interest is calculated at a fixed rate on the total amount you lend for each year of the agreement. As the interest rate is set for the duration of the agreement, you generally cannot increase your repayments every month if you wish. If you want to extend the life, you may be charged a reprogramming fee. Choose a lease-purchase or a leasing plan accordingly. (Clients should seek independent tax advice when reviewing these products.) Hundreds of thousands of us are fighting to make high monthly payments for our auto loans. It is quite difficult to track payments, but what makes things worse for many of us is the reality that the car we drive can only be worth a fraction of the funding it is owed. “Negative equity,” a rate normally reserved for homes, is used to describe a situation in which the owner of a financed asset owes the bank more than the actual value of the asset. It is never a nice position to be in, but at least with a house there is a chance that at some point in the future it will be its lost value again. It is not with a car and recent changes in the way we tax our cars in this country that large gasoline cars have seriously devalued, that many of us are very hard hit in our pockets.