If the buyer is in arrears with the payment of the instalments, the owner can repossess the goods, a protection from the seller that is not available with unsecured consumer credit schemes. HP is often beneficial to consumers because it spreads the cost of expensive items over a longer period of time. Commercial consumers may find that the different balance sheet and tax treatment of rental properties are advantageous for their taxable income. The need for HP is reduced when consumers have collateral or other forms of credit available. If this rule of third parties is violated by the owner, the consumer has the right to withdraw from the contract and can request a refund of all payments made. More information on the rule of thirds can be found on the website of the Competition and Consumer Protection Commission. If the property is leased under a hire-purchase agreement, the retailer and the owner (financial company) are liable. In this situation, a consumer can assert claims against any party. A claim cannot be made against the manufacturer of the goods. It is advisable to read a hire-purchase agreement very carefully before committing to a contract. The cost of a hire-purchase agreement is the difference between the spot price of the leased property and the total hire-purchase price.
If the cash price of a car is €12,000 and the hire-purchase price is €17,000, the hire-purchase cost is €5,000, i.e. the additional costs associated with renting (and possibly owning) the car for a period of time, rather than buying it directly for cash. You must pay all payments due before the end of the contract. If your payments are less than half the total price of the goods, you may still have money to pay because the lender is entitled to that amount under the agreement. If you have already paid more than half the price when you terminate the agreement, you will not be able to get a refund, but you will usually not have to pay more. As part of a hire-purchase plan, the consumer is required to maintain the leased property appropriately. If the goods are damaged by the consumer and returned to the owner or financial company, they are entitled to send the consumer an invoice for repairs. Financing a car with a personal purchase agreement (PCP) Independent dealers have a larger selection of cars because it is much easier for them to operate different manufacturers. You`ll also find mostly used cars, which means vehicles are usually cheaper. .