Hire Purchase vs Personal Loan

PH1LL

dont get any more comission for personal loan, hp is always the first route we go.

If you werent explained about not being able to vt - talk to the CAB

I expect the sales man convinced you not to VT so he could get you in to a personal loan to get rid of a car that is up for too much money.

it only takes a car not to be sold for 2-3 months and then it can be £1000 over priced - bearing in mind on average cars drope at around £300 - £500 pcm

as they get older it slows down though

~Brock~

Sorry folks but I don't really buy this assumption that if you end up with a personal loan via a dealer then you must have been stiched up by the dealer.

Many finance companies - escpecially those who deal at the prime end of the market (lowest rates) are offering personal loans via dealer instead of HP. Dealers can only offer to customers what finance companies give them to sell.

It is likely in these cases that the finance companies concerned have moved away from HP because of the losses they incur when people use the VT clause in HP agreements. Whilst HP is probably more commonplace in sub prime markets, because it in theory prevents the customer from selling the car, in the prime marketplace where customers probably default less it is likely to be worth the switch to unsecured loans.

I dont see how getting a P/Loan via a dealer is in some way underhand of the dealer. Their biggest cometition for finance business recent years has been the direct lenders who have been lending unsecured anyway. The customer generally just wants a loan for a car, and unless they specify it must be a HP then what's the problem? It could well be that hte dealer has got you the lowest rate he can and it just so happens to be on a P/Loan.

PH1LL

nope - whenever i prop a finance deal for black horse / hyundai car finance / PSA finance / personal loan is always higher rate.

All the manuafacturers low rate finance and standard finance is also HP

We sell over 600 cars per yr from the dealership i work at - all finance is HP, only personal loan if LTV is too high.

PH1LL

We sell Citroen, Peugeot, hyundai and Kia and are main dealers.

~Brock~

PH1LL wrote: »

nope - whenever i prop a finance deal for black horse / hyundai car finance / PSA finance / personal loan is always higher rate.

All the manuafacturers low rate finance and standard finance is also HP

We sell over 600 cars per yr from the dealership i work at - all finance is HP, only personal loan if LTV is too high.

Appreciated, but not all dealer have such a choice of lenders - escpecially used car dealers.

A few years ago Barclaycard (of all people) were offering ridiculously low rates via car dealers for car loans that were unsecured.