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Is HP only available for new cars?

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3dgre
3dgre Posts: 5 Forumite
Name Dropper First Post
My old car died on me and I need to replace it. I can't afford a new car just now and will need to borrow some money.
This is probably a silly question, but is HP available for this? (I've had HP before, but it was for a new car.)
If not, is a personal loan the only alternative?
Thanks.
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Comments

  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    3dgre said:
    My old car died on me and I need to replace it. I can't afford a new car just now and will need to borrow some money.
    This is probably a silly question, but is HP available for this? (I've had HP before, but it was for a new car.)
    If not, is a personal loan the only alternative?
    Thanks.

    There's PCP too.
  • DrEskimo
    DrEskimo Posts: 2,435 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    edited 26 July 2020 at 4:57PM
    You can get HP or PCP (which is just a variant of HP) for used, but the rates are hardly competitive.

    If you have a good credit history and income, then you can get much cheaper unsecured loans.

    Whilst not meaning to pry, but if you don't have savings then presumably you haven't had surplus funds in your budget to set money aside? Therefore where is the money to pay back a loan suddenly going to come from....?
  • bexybest
    bexybest Posts: 59 Forumite
    Sixth Anniversary 10 Posts Combo Breaker Debt-free and Proud!
    For used cars you can get HP, PCP or use a personal loan. Alternatively you could get a PCH (lease) for a new car which has no ownership options but may be cheaper monthly.
  • Grumpy_chap
    Grumpy_chap Posts: 18,252 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    @OP - what sort of budget do you think you will have and how old do you mean by "used"?  
    The reason I asked is
    DrEskimo said:
    You can get HP or PCP (which is just a variant of HP) for used, but the rates are hardly competitive.
    is normally true.

    However, I was sent a marketing e-mail from the people we bought my wife's car suggesting she swapped it up and offering deposit allowance and attractive finance rate on new and used cars.  I didn't look into the detail as we are not in the market for a new car, but that was main dealer and may be worth exploring something similar if that is the kind of level of "used" you mean.
  • 3dgre
    3dgre Posts: 5 Forumite
    Name Dropper First Post
    DCFC79 said:
    3dgre said:
    My old car died on me and I need to replace it. I can't afford a new car just now and will need to borrow some money.
    This is probably a silly question, but is HP available for this? (I've had HP before, but it was for a new car.)
    If not, is a personal loan the only alternative?
    Thanks.

    There's PCP too.
    Thanks.
  • 3dgre
    3dgre Posts: 5 Forumite
    Name Dropper First Post
    DrEskimo said:
    You can get HP or PCP (which is just a variant of HP) for used, but the rates are hardly competitive.

    If you have a good credit history and income, then you can get much cheaper unsecured loans.

    Whilst not meaning to pry, but if you don't have savings then presumably you haven't had surplus funds in your budget to set money aside? Therefore where is the money to pay back a loan suddenly going to come from....?
    Thanks. Yes, I've a good credit history. Just had no money coming in over the lockdown ... Should be restarting in August.

  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    Last year I got a 4 year old Toyota Aygo from my local Toyota dealer on PCH for two years. £1200 deposit, 0% interest, £55 per month.  There was and is no road tax to pay on it, it came with a 12 month warranty as well as a 12 month MOT and I was given 12 months free full AA breakdown cover which includes home call. Because of coronavirus, AA have just extended that free cover for an extra 6 months.

    At the end of two years I can hand the car back and walk away or trade it in for another car. I've never done anything like that before, I've usually had to manage with old bangers and was a bit scared about committing myself for two years but it's really nice to have a nearly new car that's been well looked after and was fully serviced and valeted before I collected it.  So far, I'm really pleased and would recommend PCH. You just have to shop around a bit and see what is the best deal. Obviously, 0% interest for the whole two years is great and that's what drew me in to that deal.
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    edited 26 July 2020 at 7:37PM
    DrEskimo said:
    You can get HP or PCP (which is just a variant of HP) for used, but the rates are hardly competitive.

    If you have a good credit history and income, then you can get much cheaper unsecured loans.

    Whilst not meaning to pry, but if you don't have savings then presumably you haven't had surplus funds in your budget to set money aside? Therefore where is the money to pay back a loan suddenly going to come from....?

    Actually, rates are fabulous. I've got a car on PCH and my rates are 0% interest for two years. Can't really get better than that. 

     Also, please don't pry. Not your business really.
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • 3dgre
    3dgre Posts: 5 Forumite
    Name Dropper First Post
    @OP - what sort of budget do you think you will have and how old do you mean by "used"?  
    The reason I asked is
    DrEskimo said:
    You can get HP or PCP (which is just a variant of HP) for used, but the rates are hardly competitive.
    is normally true.

    However, I was sent a marketing e-mail from the people we bought my wife's car suggesting she swapped it up and offering deposit allowance and attractive finance rate on new and used cars.  I didn't look into the detail as we are not in the market for a new car, but that was main dealer and may be worth exploring something similar if that is the kind of level of "used" you mean.
    Thanks. That's worth looking into. I bought my wife's car new three years ago and got a good deal from the dealer on the HP. I'll go round a few dealers tomorrow.

    I'm just looking for something not too expensive to keep me going until I can afford a Tesla!
  • 3dgre
    3dgre Posts: 5 Forumite
    Name Dropper First Post
    MalMonroe said:
    Last year I got a 4 year old Toyota Aygo from my local Toyota dealer on PCH for two years. £1200 deposit, 0% interest, £55 per month.  There was and is no road tax to pay on it, it came with a 12 month warranty as well as a 12 month MOT and I was given 12 months free full AA breakdown cover which includes home call. Because of coronavirus, AA have just extended that free cover for an extra 6 months.

    At the end of two years I can hand the car back and walk away or trade it in for another car. I've never done anything like that before, I've usually had to manage with old bangers and was a bit scared about committing myself for two years but it's really nice to have a nearly new car that's been well looked after and was fully serviced and valeted before I collected it.  So far, I'm really pleased and would recommend PCH. You just have to shop around a bit and see what is the best deal. Obviously, 0% interest for the whole two years is great and that's what drew me in to that deal.
    That's an amazing deal! Maybe similar deals are around just now ...

    Some of the hiring deals have low monthly payments, but my only problem (maybe because I've never tried it before!) at the end of the contract I'd have nothing to sell on, to put towards my next buy ...

    But it's certainly an option to think about.
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