HP or Personal Loan

vilm

Hi.

I am about to purchase a (nearly) new car.

The cheapest personal loan I can find is cheaper than the HP offer from the dealership, because there are no first or final charges.

Despite the difference, which is a few pounds per month, are there advantages in going for the HP offer instead of the cheaper personal loan.

[The dealer says that I will benefit:
a.) if the car gets stolen - because it can't be sold;
b.) i benefit from the "tri-partite agreement".]

I'm a little confused. I know it will be in their interest to sell me the HP agreement, but could it also be in my interest? Advice is greatly appreciated.

Thanks.

scotsgirl_3

Hi

you do have a few benefits from a HP. In terms of the car being stolen, I wouldn't necessarily bother about this as not everyone checks HPI anyway when buying a car, which is where it would show, and if your car was stolen you could register it as such anyway.

the biggest difference is in the ownership of the car. if you use a loan, you own the car outright from the word go. If you have an HP agreement it is owned by th finance co until you make the final payment. However, HP has an advantage in that you should have rights to voluntary terminate the agreement. this means that once you have paid half of the agreement, you have the right to hand the car back to the finance comppany and owe nothing. THis is very good if you are someone who changes car often!!

cfu

HPI benefits are really inportant. Whilst scotsgirl above says not everyone checks - if your car has been sold through the motor trade, or you try and sell it to anyone connected with the motor trade they most certianly will. This service, which is part of an HP agreement is invaluable in my opinion. I once nearly bought a car that had I not been told about HPI would have been very messy as it had outstanding finance meaning that Iwould have had a leagal battle on my hands as a bank already had a claim to the car - title, I think they call it.

In terms of getting the best deal, you should shop around - I know a guy who seems to get the best possible deals, If you want to call him let me know and I will give you his details.