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Car finance - HP or bank loan?
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Thanks for clarifying. So being offered an unsecured bank loan at 3.4% vastly outweighs a HP at 7.9 % in every way you look at it..
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The only real advantage of HP over unsecured borrowing is that HP has the option to hand the car back and walk away after you'd paid at least 50% of the repayments, known as 'voluntary termination'. The downside of HP is that you don't legally own the vehicle until you've made the final payment.1
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Mojca799 said:Thanks for clarifying. So being offered an unsecured bank loan at 3.4% vastly outweighs a HP at 7.9 % in every way you look at it..Well yes, a personal loan isn't secured on the vehicle, if your circumstances change you can get rid if you need to.With car finance if you fail to make payments the car is at risk.1
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