Personal Loan - Car

Tixy

selecta_c wrote: »

I also have HP with Santander,signed for in March.I think HP is still a popular way to purchase a car.

paulmcerlean wrote: »

It certainly is :j

Yes, if you get finance from a dealer its mostly HP. Usually if you go for a personal loan its best to apply yourself as there are usually better deals to be had.

selecta_c

Tixy wrote: »

Yes, if you get finance from a dealer its mostly HP. Usually if you go for a personal loan its best to apply yourself as there are usually better deals to be had.

I got 7.5 APR on my HP with Santander which i thought was quite a good deal.

Tixy

That is a good deal selecta.

Sorry I don't think my post was very clear!

I meant only if you are going for a personal loan you often get a better deal on one you source yourself rather than a personal loan through the dealer (or any third party). As in I think it is fairly uncommon to get a personal loan from a car dealer (which the OP has done in this case)

Debs0778

I've had 6 cars and only 2 have been on HP - and I always ask for that as a preference! I always shop around however for the finance and only take it from the dealer if they can match or better what I can get on my own

riasmiler

Hi I am in a similar postion to Debs 0778, I have a HP loan that was for over 60 months, I have been in the agreement for 2 and a half years but now need to look for a car that is cheaper to run, I now owe £7440 on the agreement so could I trade the car in with the finance owing to a dealership for a car that is priced at around £9k??

Tixy

You need to read your HP agreement or contact your lender for guidance. You cannot just sell a car on HP, but if you do trade it in to a dealer they should be able to ensure that the outstanding finance is paid off from the value of the car and that they give you any remaining funds from the price they will pay you for your car towards a new car.

However you say you owe £7440 on the loan - is that the settlement figure? how much is the car worth (often a car will be in negative equity so you won't get as much for the car as the finance is, in which case you could end up still owing money to the finance company which you would have to pay).

As you are 2.5years in to a 5year finance agreement you may be better off financially if you hang on until you have paid off half the debt at which point you can usually hand it back to the finance company at no cost and then start again.