Vehicle finance

paddyamy2000

What are the rules and the law for selling finance and hp on vehicles and charging interest on loans etc.

What do you require and who makes the decisions??

forgotmyname

Who makes the decisions? What decisions?

Who to lend to and how much to charge? The finance company and they can charge what they like as long as its on the paperwork.

They can sell you a £1000 car for £20,000 and charge £50,000 interest if your mad enough to sign on the dotted line.

You require the means to pay it back.

[Deleted User]

You may need to be more specific...

Gentoo365

I am going to assume that you are in the business of buying and selling vehicles. I am also going to assume that you are looking at the possibility of offering customers credit so that they can purchase these vehicles.

To do it yourself you would need to be authorised. Except if you were only offering to larger companies (see link).

https://www.gov.uk/offering-credit-consumers-law

I would have thought it would be easier to contact one of the existing vehicle finance companies and have them offer the finance to your customers.

longtermplanner

The law relating to HP on vehicles is the Consumer Credit Act. Lenders are likely to have to be regulated by the Financial Conduct Authority.

This seems a peculiar place to ask if someone is thinking of getting into this as a business. If you are just going to supply one car to a relative or an employee, it is likely that you are exempt from the relevant legislation.