Yes, you may complete the purchase of your vehicle before the expiry of the hire period. An early completion fee will be charged (please refer to our fees & charges table).
Here is an example of what would be payable upon early completion of the purchase of your vehicle.
Amount Finance (AF) |
$50,000 |
Flat / Applied Interest Rate |
3.5% |
Hire Period (N) |
60 months |
Total Interest (TI) |
$8,750 |
Rental Charges / Monthly Instalment |
$979.17 |
If you decide to exercise your right to complete the purchase of the vehicle (Early Completion) on the 24th month having paid 23 instalments in arrears, balance payable (as defined in the hire purchase agreement) would be calculated with the following formula:
(AF+TI)-(RC+OI+RV)+(OA)
Where
– RV is Recovered Value
– OA is Outstanding Amount
Total of all rental charges paid (RC): $979.17 x 23 = $22,520.91
Number of months remaining in the hire period(n): 60 − 24 = 36
outstanding interest (OI)
= [n (n+1) x TI] / [N (N+1)]
= [36 (37) x $8,750] / [60 (61)]
= $3,184.3
balance payable
= $50,000 + $8,750 − $22,520.91 − $3,184.43
= $33,044.66
early completion fee
= (20% of outstanding interest(OI)) + (1% of balance payable)
= (20% x $3,184.43) + (1% x $33,044.66)
= $967.34
Aggregate amount payable for early completion
= balance payable + early completion fee
= $33,044.66 + $967.34
= $34,012.00