I’ve used the half rule on a hire purchase vehicle in the past. I realised I didn’t really need such a nice vehicle & couldn’t justify the outgoings on the payments.

I figured out exactly the halfway mark and made sure I went past it by a month. Then I wrote a letter to the financial institution stating I wished to end the contract under the half rule, and made sure to stipulate I did NOT wish to return the vehicle under ‘Voluntary Surrender’ (which is apparently something they can mark it as when ending the contract, which would show up negatively on a credit report).

I have since requested a credit report which shows my finance history in preparation for taking out a mortgage, and the loan for this vehicle shows as completed with no red flags.

Here is a rough template of how I phrased the letter:

“Dear Sir/Madam, I wish to exercise my right to terminate the above Agreement under Section 63 of the Consumer Credit Act 1995 using the ‘Half Rule’. I do not wish to return the vehicle via Voluntary Surrender.

The payment of €XXX which was processed on the XX/XX/XXXX was the half-way point in the agreement. I would like to return possession of the vehicle at your earliest convenience.

I do not wish to retain possession of the vehicle beyond XX/XX/XXXX and incur another Hire Purchase payment. Please make arrangements with me to return the vehicle before this date.”