HP help

stationairy

So just bought a used car on HP but while signing the paperwork the finance person mentioned I could pay off which I thought was strange but thinking I may save more if I do and was looking for advice

So deal was structured

14k for car
2k for my car
2k deposit

So 10k on HP

Now i thought it was a good deal as he said if took on finance he could knock car down to 14 k and give me 2 k for mine which saved about 1k on car and gave me £500 more than mine was worth.

Now as the deal was structured like that it meant I had hardly any interest to pay as I got the 1500 off really but now the deal has been done if I get a bank loan I can pay off and probably save another 700 quid

What I am wondering is this possible ? If it is as I have good credit will they then look to change the deal for example go back to what my car worth and increase the price on the car I bought.

If it is ok just seems to go to be true so looking for piece of mind to before I start the process started as I don’t want to get a loan and be in a worse position or should I just stick to deal I signed up for.

James2k

Its possible, when i bought my most recent car, i took finance to save about a grand, then the next day, called the finance company and cancelled (withdrew from) the finance, paid it off. and job done.

Ideally don't use the word settle, you want to withdraw. (has to be within 14 days)

you will only have to pay a few days of interest.

foxy-stoat

What are your monthly repayments and how many years?

If you can get a personal loan you can settle but you would need to have very good credit history and salary to match - they cant change the price you agreed to pay for the car if you did settle early.

davidwood681

If you get a personal loan to pay off the HP and require another personal loan in the future it might not be accepted.

You have more chance of getting a personal loan in the future if the car is on HP.

iolanthe07

I saved over £3000 on a new car last year by taking out finance and then paying it off in full. The discounts were not available for cash customers, only for those who took credit. There were no repercussions.