Hire-Purchase (General) Regulations 1975



    5. Explanation of hirer's rights to statutory rebate

    The explanation of a hirer's right to a rebate of terms charges pursuant to section 11 on payment of the net balance due to the owner to be given to the hirer pursuant to the provisions of the First Schedule of the Act and to be printed in type known as 10 Point Roman capitals as specified therein is as follows:

          UNDER SECTION 11 OF THE ACT, THE HIRER UNDER A HIRE-PURCHASE AGREEMENT IS ENTITLED TO COMPLETE THE PURCHASE OF THE GOODS BY PAYING OR TENDERING TO THE OWNER THE NET BALANCE DUE TO THE OWNER UNDER THE AGREEMENT. WHEN DOING SO THE HIRER WILL BE ENTITLED TO A }STATUTORY REBATE~ OF THE TERMS CHARGES, CALCULATED IN ACCORDANCE WITH THE DEFINITION OF THAT TERM IN SECTION 2 OF THE ACT AS FOLLOWS.

          THE AMOUNT OF STATUTORY REBATE SHALL BE CALCULATED IN ACCORDANCE WITH THE FOLLOWING FORMULA



          WHERE (IN EACH CASE)
                }C~ = THE AMOUNT OF TERMS CHARGES

                }N~ = THE NUMBER OF COMPLETE MONTHS OF THE AGREEMENT STILL TO GO

                }T~ = THE TOTAL NUMBER OF MONTHS IN THE AGREEMENT

          INSTALMENTS IN THE EARLY STAGES OF REPAYMENT CONTAIN A LARGER PROPORTION OF THE TERMS CHARGES THAN INSTALMENTS PAID LATER ON TOWARDS THE COMPLETION OF AN AGREEMENT. THIS IS BECAUSE THE GREATER PART OF THE PRINCIPAL AMOUNT IS OWING IN THE EARLY STAGES OF AN AGREEMENT. THIS IS DEMONSTRATED IN THE FOLLOWING EXAMPLES WHERE, FOR EXAMPLE, $260 TERMS CHARGES ARE INCLUDED IN AN AGREEMENT TO BE PAID IN 12 MONTHS BUT THE AGREEMENT IS COMPLETELY PAID OFF WITH

          (A) 9 MONTHS STILL TO GO 260 x 9 x 10 = $150 REBATE 12 x 13 (PAY $110
          TERMS

    CHARGES)
          (B) 6 MONTHS STILL TO GO 260 x 6 x 7 = $70 REBATE
          12 x 13 (PAY $190
          TERMS
    CHARGES)
          (C) 3 MONTHS STILL TO GO 260 x 3 x 4 = $20 REBATE
          12 x 13 (PAY $240
          TERMS
    CHARGES)



Note: This is not an authorised version. The only authorised version is the hardcopy (printed) version published under authority of the Government Printer, available from the State Law Publisher, 10 William St Perth W.A. 6000.