Is HP only available for new cars?

3dgre

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.

DCFC79

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

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

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

@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

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

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

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.

MalMonroe

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.

3dgre

Grumpy_chap said:

@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

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.