Cancelling HP Finance Before Collecting the Car

bungle86

Hey all, totally new to this and really need some help.

My dad, foolishly, signed an agreement in principle with Vauxhall a few days ago for a used car. As part of the agreement they performed searches and offered him HP finance @ 15.9%!

Now the car he wants is fine, but i don't really want him taking HP when he can get a loan for the same value for 3.4% APR saving him well over £50 on the repayments and shaving £'s off the final fee.

The question is this... if he walks away from the finance now will this impact him negatively?

Thanks

[Deleted User]

The worst that will happen is that it will show as a closed account.

If he does it within the cooling off period, not even that.

molerat

No. He can cancel the finance within the 14 day cooling off period and it is treated as if it never existed. The only possible negative is that the search footprint will stay.

MEM62

bungle86 wrote: »

I don't really want him taking HP when he can get a loan for the same value for 3.4% APR saving him well over £50 on the repayments and shaving £'s off the final fee.

Final fee?

Are you sure this is HP? Sounds like it could be PCP to me.

bungle86

Thanks all, thats really clear!

PRAISETHESUN

You can cancel the finance within the cooling off period (usually 14 days). Just be aware that depending on the terms of the sale, cancelling the finance doesn't always remove any obligation to complete the sale (ie. you still have to pay and can't just return the car).

From what you say, your dad still wants the car just with a better finance deal so just keep in mind what the fallback might be if he can't actually get approved for the loan he's eyeing off.

Clive_Woody

bungle86 wrote: »

Hey all, totally new to this and really need some help.

My dad, foolishly, signed an agreement in principle with Vauxhall a few days ago for a used car. As part of the agreement they performed searches and offered him HP finance @ 15.9%!

Now the car he wants is fine, but i don't really want him taking HP when he can get a loan for the same value for 3.4% APR saving him well over £50 on the repayments and shaving £'s off the final fee.

The question is this... if he walks away from the finance now will this impact him negatively?

Thanks

Has he got the loan offer confirmed in writing at 3.4%?

jonesMUFCforever

I was wondering that too - is the new loan at a lower rate in place?