HP Finance Vs Personal Loan

Moneymadness1980

Hi, I recently I bought a new car using HP finance but because I didn't have much of a deposit, the apr was way over the odds. Basically I took out the HP for £6995 over 5 years, but if I pay the whole term this will end up as £11,750.
I was wondering if taking out a personal loan to pay this off would be a good idea as I can get one at 7.6% for 4 years with cheaper monthly payments?
Any help on this would be much-appreciated!

RDG

First you need to check if you can settle the agreement early and if you can if there are any plenalties for doing it.
Second have you actually been approved for that rate? or is that the advertised possible rate?

Moneymadness1980

Thanks for the quick reply.
I'll check about the settlement but I did ask the company selling the car and they thought it would be fine but then again, what would they know.
The rate is the advertised one but surely anything would be better than the one I'm on now.

Mara69

Moneymadness1980 wrote: »

The rate is the advertised one but surely anything would be better than the one I'm on now.

There are no guarantees that you'll get a better rate. Acceptance depends on a variety of factors, such as your income and outgoings, your current debt (because even though you say you'll be paying the HP off, loan companies still count it as debt as there are no guarantees you will pay it off). Then there is your general 'worthiness' ie, have you any late payments, defaults etc.