Title Transfer Payment for car HP

MAH_3

Hi. I'm a new user, I think I've put this in the right place...?!

I'm reviewing the rather painful HP agreement on my car, looking to refinance it now that my credit rating has picked up. One of the charges incorporated into the total charge for credit is a "Title Transfer payment" of £150. The car is registered in my name, done by the garage and with no DVLA fee incurred. Question therefore being: what is the Title Transfer fee for...? A quick web search doesn't bring up any obvious references other than property titles, and there's nothing on the DVLA site. Does this relate solely to the financial agreement? And what does it mean? Any pointers welcomed. Thanks

milan_ns

I think it's just an administrative fee to discourage early repayment.

HP APR would go up if you repaid early because you'd need to pay the fee on top of the loan.

MAH_3

Thanks for that. Seems a bit harsh as they already charge a £250 acceptance fee.

27col

I think that is known as getting you coming and going.