HP agreement with balloon payment

foolishboy

Hi all,

I'm trying to work out if I could possibly hand my car back early under the 'paid 50%' rule but struggling to work out at which point I'll have paid half.

Basic terms are:

Amount of credit: £16760
Interest: £5454
Total amount payable: £22214

1st payment: £1056.66
35 months @ £352.22
Final payment (optional) of £8820

So which figure do I have to have paid 1/2 of to hand the car back? £16760? or £22214?

In November I'll have paid 24 months plus deposit so that's £9509.94, so perhaps after that I'd only have another £1598 (4.5 months ish) to pay before I could hand it back?

Thanks!
Foolish

duggie1982

I think you need to pay the interest first then half of the credit after that. E.G. Pay £5454 then pay half of £16760 = £8380 so in total should be £13834.

Im sure thats the way it works. In fact if I remember correctly it showed my 50% amount on my HP contract.

PNPSUKNET

When I gave myn back it was 50% of the total amount, e.g total due inc intrest £10,000 VT amount £5,000