Whats best hp or loan

Rallan1966

Whats best to purchase used car, hire purchase or bank loan? 

DrEskimo

Best in what sense?

Whatever one has the lowest APR will be cheapest, but depending on your personal and credit history, you may not get accepted for a low rate bank loan, so may be easier to get accepted for a secured loan.

Does the HP finance come with any incentives (e.g. servicing or deposit contributions?

Petriix

Mortgage was cheapest for me (1.84% and heavily discounted purchase price) but lease can often work out lower total cost if you don't want to own outright, especially if you're flexible about which vehicle you go for. Often small batches of cars are heavily discounted for lease so, if you shop around, there are bargains to be had.

fox2319

Possibly one then the other. I've been looking at some deals at the moment and a lot of places are doing a fairly hefty contribution to finance but the interest rates are higher. If you can be bothered with the hassle, it might be worth looking into taking out finance first and then switching to a loan after a month or so.

JustAnotherSaver

Cash      

BOWFER

JustAnotherSaver said:

Cash      

Incorrect and old fashioned thinking.
There are often many great deals to be had taking out finance on a car, money off/free deposits/cashback etc.
And if you don't like having the finance, you check out the fastest you can settle it without penalties (usually no more than a couple of months).
But, whatever, the days of 'cash being king' in car deals are long gone....

DrEskimo

BOWFER said:

JustAnotherSaver said:

Cash      

Incorrect and old fashioned thinking.
There are often many great deals to be had taking out finance on a car, money off/free deposits/cashback etc.
And if you don't like having the finance, you check out the fastest you can settle it without penalties (usually no more than a couple of months).
But, whatever, the days of 'cash being king' in car deals are long gone....

That to me is a 'cash buyer'. 

If you don't have the cash, then you are paying interest and therefore increasing the overall price paid. So whilst technically it is buying it on finance, it is having 'cash' in the bank to settle the finance the next day that makes it the best option.

thegentleway

BOWFER said:

JustAnotherSaver said:

Cash      

Incorrect and old fashioned thinking.
There are often many great deals to be had taking out finance on a car, money off/free deposits/cashback etc.
And if you don't like having the finance, you check out the fastest you can settle it without penalties (usually no more than a couple of months).
But, whatever, the days of 'cash being king' in car deals are long gone....

“83% of nearly 6000 cars scrutinised by our Target Price experts were cheaper to buy using cash” -https://www.whatcar.com/advice/buying/cars-that-are-cheaper-to-buy-on-finance-than-with-cash/n19750

Grumpy_chap

thegentleway said:

BOWFER said:

JustAnotherSaver said:

Cash      

Incorrect and old fashioned thinking.
There are often many great deals to be had taking out finance on a car, money off/free deposits/cashback etc.
And if you don't like having the finance, you check out the fastest you can settle it without penalties (usually no more than a couple of months).
But, whatever, the days of 'cash being king' in car deals are long gone....

“83% of nearly 6000 cars scrutinised by our Target Price experts were cheaper to buy using cash” -https://www.whatcar.com/advice/buying/cars-that-are-cheaper-to-buy-on-finance-than-with-cash/n19750

Those great incentives are typically attached to new cars.  The OP asked about used cars?

Rallan1966 said:

Whats best to purchase used car, hire purchase or bank loan? 

Obviously, a bit more information about what type / age / budget of used car would support more relevant advice.

motorguy

thegentleway said:

BOWFER said:

JustAnotherSaver said:

Cash      

Incorrect and old fashioned thinking.
There are often many great deals to be had taking out finance on a car, money off/free deposits/cashback etc.
And if you don't like having the finance, you check out the fastest you can settle it without penalties (usually no more than a couple of months).
But, whatever, the days of 'cash being king' in car deals are long gone....

“83% of nearly 6000 cars scrutinised by our Target Price experts were cheaper to buy using cash” -https://www.whatcar.com/advice/buying/cars-that-are-cheaper-to-buy-on-finance-than-with-cash/n19750

That is somewhat misleading.

What they are saying is "the overall cost will be cheaper for 83% of the 6,000 cars checked if you buy with cash compared to finance", not that the actual car itself will be cheaper because of / if you offer them cash.

JustAnotherSaver

BOWFER said:

JustAnotherSaver said:

Cash      

Incorrect

HAHAHA!!

I knew someone would bite. You'll find that you are actually incorrect to call me incorrect.

The OP asked what is best X or Y. They gave absolutely no criteria whatsoever. A blank canvas. In what way is 'best' defined? The OP didn't specify.

So i responded with Z.

A seller may do me a car £500 for cash but £750 if i pay by card and I may not have £750.

If they want to be more specific then they can feel free to lay out their criteria.

Don't be so quick next time