Contract Hire Cheapest Mid Sized Car

bambam00

Hi, im looking to take out HP on a car. I have always bought new and hate the selling of it after 3 years. People tell me that HP is a good idea, that way I have a contract for 3 years then hand the car back and get a new one.

Anybody know what the cheapest deals are out there on a mid sized car such as astra or focus?

Thanks

fatboyonadiet

HP isn't a good thing, you pay too much and can be tied into to mileage to guarantee future value, also you never really 'own' the car. Try posting in the motoring sub-board (within the Travel board) for some more helpful tips and advice.

fatboyonadiet

Also why do you buy new? And why do you sell after 3 years? You don't have to! If you want a newish car try getting one that is a few months old or ex-demo, save yourself a bit that way. HTH.

trigger_mike

i was on hp on a new renault clio a couple of years ago, never again, lost so much money, paid £8650 for the car, and sold it a year later as it was crap and costing a fortune and i was scared to driving over the 10,000 miles a year limit for £5800 losing £126 p/m for 12 months and a £2200 disposit i paid.
Buy nearly new, you don't lose so much money and it's as good as a new car, i learned the hard way!

bambam00

Thanks for your advise all

I know buying new is daft, however this is my treat to myself for being good (most of the time).

I know quite a bit about legalities on HP contracts and if you can find the right one it doesnt have to work out too expensive. I realise I would need to be realistic with mileage and I would be looking for 12K a year (I know I would never exceed this).

With HP contracts you dont actually need to see the full 36month contract through. HP companies will never tell you this but its part of the halves and thirds rule on the consumer credit act.

With the right priced HP agreement I should be able to save money (based on the devaluation on a new car over 3 years).

I was hoping someone else may know of some good places to look for HP.

Thanks all again :beer:

fatboyonadiet

I can see your point and this was my thinking until I got stung a bit, best bet and probably cheapest way is to get your own load and manage your payments how you want, if you ever decide to get rid best way is to sell privately, pay off loan and then look at next car - obviously it's a bit of hassle but the most moneysaving. I did this after my HP hassle, got rid and bought something with a personal loan, much more feels like 'my' car. A couple of months ago I used some of my stoozing money to pay off the loan, meaning I'm pay 0% interest on my car! Check out the credit card board for more advice on stoozing.

bambam00

Dohh sorry guys I just realised I put HP not Contract Hire

fatboyonadiet

Are they not similar things?

trigger_mike

Contract hire purchuse = HP, i thought as well.

bambam00

Hire Purchase (HP) or conditional sale
The conditional sale is common at franchised dealers. You pay an initial deposit, then the balance plus interest is divided into fixed instalments over a fixed period. The vehicle is sold to you provided all the payments are made, the car is comprehensively insured, and the car is maintained in good condition. You only own the car when the last payment is made. With Hire Purchase the terms are similar, but you hire the car with a final 'option to purchase' fee payable at the end of the contract.
PCH - Personal Contract Hire
If you are interested in a nearly new car, you may consider Personal Contract Hire (PCH), also called Personal Leasing. This is a long-term rental where maintenance is covered, but ownership of the car never passes to the person paying the instalments. This may be suitable if you are self-employed - ask your accountant for advice. Documentation fees are added to payments at the beginning, or end of the agreement. This administration cost should be clearly detailed and can be anything from £50 to £100

Nile

Hello bambam00


I've moved your thread to the 'Motoring & Public Transport' board, where it should get more views and responses.

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [email="abuse@moneysavingexpert.com"]!!!!!![/email].


Kind Regards

Nile