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Car Finance Query
yoshiyella
Posts: 610 Forumite
in Loans
Hello All,
A query for a friend as I don't know the answer - he has car finance at quite a high APR and taken out over 5 years. What he didn't realise was that it was high due to defaults on his credit file. Both defaults have now fallen off so he has a fairly healthier looking credit file - no late payments/defaults/ccjs etc.
The finance was a HP agreement.
Can he find car finance through another company at a lower rate (hopefully) that will just pay off the existing finance but the new company becomes the official owner of the car (so still being a HP agreement)? Or would it have to be a personal loan?
Thank you
A query for a friend as I don't know the answer - he has car finance at quite a high APR and taken out over 5 years. What he didn't realise was that it was high due to defaults on his credit file. Both defaults have now fallen off so he has a fairly healthier looking credit file - no late payments/defaults/ccjs etc.
The finance was a HP agreement.
Can he find car finance through another company at a lower rate (hopefully) that will just pay off the existing finance but the new company becomes the official owner of the car (so still being a HP agreement)? Or would it have to be a personal loan?
Thank you
0
Comments
-
Personal loan is the only way really.
Get the settlement figure for the lender first, so he knows how much to apply for, if its near to the next rate down then apply for more and overpay as soon as possible.
As the loan will be to clear off existing debt it is unlikely they will get the 3.3% or lowest rate but nothing to stop him from applying.0
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