HP for private hire car for a year?

jimmynitcher

Hi

I am selling a house with no mortgage in a year and need a car for UBER/private hire work.
Unfortunately my employment is ending as I thought I was going to rent a car but discovered it was too expensive at £200 a week and now I cant wait for a mortgage.
Carshop have offered me an HP deal on 15k Prius (it has to be a 2015 car) but they told me they would 'pretend they didn't hear' about the private hire usage.
Is this my best option ? I can pay it off in a year so...

or are there some awful violation of terms problems that I might encounter?

I tried to get a loan from my bank , but I got confused as it is essentially a business loan, which they don't do, I wish I'd said it was for something else now.

Or should I lease or something?

Thanks for any guidance - I'm feeling completely confused and worried about getting to work asap.

MEM62

You will be using the car as a business (hire and reward) and therefore you need a business loan or commercial finance for it. There will be specialist providers out there as I am sure that very few cabbies purchase their working vehicles outright.

Do not be coerced into lying on a finance application or any other agreement. It will come back to bite you.

jimmynitcher

Thank you, yes they are very keen for me to sign and its raising my flags. I thought since it was only a year it might be worth the risk?

Can you recommend any companies/links?

I'll do more searching.

jimmynitcher

OK I've been offered another HP agreement on another car and I was completely honest about it being for Private Hire and they didn't bat an eyelid.
Can you tell me how it can come back and bite me ? Because it seems like a simple case of selling it in a year and paying the balance.
There are no balloon payments on the deal at the end and you only pay the accrued interest so I'm not sure what the problem could be.

MEM62

jimmynitcher wrote: »

OK I've been offered another HP agreement on another car and I was completely honest about it being for Private Hire and they didn't bat an eyelid.
If it is finance suitable for business then you are good to go.
Can you tell me how it can come back and bite me ? Because it seems like a simple case of selling it in a year and paying the balance. Biting you in respect of non-business finance? Should the finance company discover that you have provided false information on the application the loan will be recalled so you would have to repay the balance immediately. You would loose the car. There may be fraud markers placed on your credit history. Getting furture credit of any nature could be problematic or, worse case scenario, impossible.
There are no balloon payments on the deal at the end and you only pay the accrued interest so I'm not sure what the problem could be. You take the chance and risk the consequences. It's your call.

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jimmynitcher

Ok thank you very much for your help.

has said with HP its social, domestic or business and he's never had a problem and that he has provided loads of taxi drivers with cars in that way, as opposed to PCP where the company has a vested interest in the condition of the car as its coming back to them.

Car_54

jimmynitcher wrote: »

Ok thank you very much for your help.

has said with HP its social, domestic or business and he's never had a problem and that he has provided loads of taxi drivers with cars in that way, as opposed to PCP where the company has a vested interest in the condition of the car as its coming back to them.

HP company also has a vested interest. Repossession is always a possibility.

Herzlos

jimmynitcher wrote: »

has said with HP its social, domestic or business

Taxis would come under "hire or reward" rather than "business". Business means using a car to do your job, sales reps and so on. Hire or reward is when you're being paid to use the car - taxis and couriers.