Re: Information on hire purchase termination and options (construction plant & equipm
My understanding is that if you purchase as a consumer, you are entitled to return the purchase under the half rule. However, if you have signed an "Unregulated Business Hire Purchase Agreement", you unfortunately are not entitled to use the half rule as a way out.
Your options are to sell the plant yourself and pay off the balance owing or return the plant and allow the lender to auction it off for nothing and you will have to pay the balance owing.
A friend of mine is a medium-sized developer and he has restructured/extended his hire purchase agreements with his bank in order to reduce the monthy payments as he's unable to sell the equipment.
It's possibly the best option in a no-win situation.
You should contact MABS for advice, that's who I got this info from and they're very helpful and knowledgeable.
Good luck!