Hire Purchase? on new car

patchwork_cat

I was always told that HP was not a good thing , but I am really just checking if I am up to date in my thinking.

I am looking at replacing my car with a Qashqai and had a company say their best price on a Visia was £11 595. Now that seems a really good price, until he said did I mention the £5000 that you have to finance for 18 months, we give you an extra £300 so it is effectively 0%! Straight off I said is that HP, he said sort of - no thanks!

I am wondering if I am right or wrong to be wary. Am I correct in thinking that some of these keep the car in their name until the finance is paid off.What are the pitfalls, is it a case of it seems too good to be true it probably is?

Hintza

Why not get a bank loan if you need to finance it?

Drive the deal currently have the Visia 2 1.6 @ £14,195 and the diesel @ £15,413. (no extras eg metallic paint)

AdrianHi

Pay £14,000 for a Qashqai 1.6 Visia and loose £7,677 in 3 years on depreciation alone.

Lease the same car for 3 years and the total is about £6830 including road tax and VAT at 17.5% (VAT will be 15% at least until December). So it will actually be a bit less than £6830.

Save a lot more buying nearly new with a bank loan.
I wouldn't get into any finance agreement where my name was not on the V5 so ownership was clear cut. Heard some problem with some strange deals where the garage owns the vehicle you drive, garage goes bust, car gets repossessed even though you have made the payments.

Just a thought.

... Qashqai, such a silly name, cannot say it never mind spell it without looking it up :rotfl: Good car though.

Lemonade_Pockets

Sounds like a 18months pcp. Best thing to do is to get them to do a written quote.

Most retail credit agreements i.e Hire Purchase or PCP. Will mean the V5 is in your name. However the finance company will have legal title to the car untill the finance is settled.

With these deals you can settle the finance at any point and you will get a rebate on the interest. So you could agree to finance the £5k. Get the great price and the extra £300. Drive home then ring up and settle the finance. (Watch out for doc fees tho)

The exceptions to this are Lease hire and Contract hire. Where you do not own the car you simply rent or hire it as the name suggests.

patchwork_cat

Hintza because the deal at 3K less than you stated is dependant on finance. I don't need a loan have the cash to pay, but this deal is dependant on the finance. Also even at nearly new the best price is 10.5k for 18 moth old. This is a good deal on the face of it. Thank you lemonade - so worth reading the small print. Thought about the going bust thing. However my nickname for Qashqai is cashcow, but they are the safest family size car out there.

Lemonade_Pockets

Have you got a link to the deal or some proper figures?

Really unless they've constructed the deal with a deposit contribution, you could just pay cash. It is illegal to for the price of the car to differentiate between cash and finance deals!!!!

Hintza

So where can I get one for under £12k?

patchwork_cat

It is £11 595 on the road. Interesting Lemonade. The finance aspect wasn't mentioned on the quote emailed to me. it was only when he rang me as it is coming up to year end! that he mentioned the finance aspect. I have just double checked the emailed quote and there is absolutely no mention of this finance that he suddenly mentioned. Sounds dodgy doesn't it, but at that price I am really tempted. When I look on their website it is £13727,but he confirmed it is £11845 with £300 cashback. It is carsandfinance.com The car is pre registered to my order! usually on day of purchase. Adrian - have you got a link to the lease company that you would use?

Phil_L_2

As a matter of interest who is giving you the deal?

I am currently going through the same process but was told that I can pay off the finance almost immediately

AdrianHi

patchwork_cat wrote: »

Adrian - have you got a link to the lease company that you would use?

I tend to see what the What Car "Lease this car now" options say to come up with quick quotes like this. Find your way into the details for the car, look on right side of page for "Lease this car now" link. £149 a month is listed for the above mentioned car, but this is Ex. VAT and excludes the deposit equivalent to 3 months payments - all included in the figure I quote earlier.
It was Neva Consultants Leasing (Doncaster) top of this list at the time I looked (list changes all the time) http://www.whatcar.com/contract-hire-results.aspx?pg=2&RT_ID=2695

JasonLVC

www.contracthireandleasing.com is the place to search for all the best lease deals on all cars.

Just picked up a Renault Koleos (a rebadged Quashqui/X-Trail) Privilege 4x4 175bhp for £280 incl VAT p/month over two years with 3 months down as deposit on 20k miles per year. This is a personal lease (or contract hire) deal so you never get to own the car - but at end of term the company will offer it to you for a price (but not quiter the same as the guaranteed minimum value you get in a PCP).

That's a car a million times better than the Quasqui for much much less.

Provided you look after your car, don't trash it and like a new car every year or so, leasing is miles cheaper than buying.