HP finance for used car

HappilyNorth

Before I embark on what will probably be a world of small print, can anyone suggest a reputable HP finance company to use for a fair-to-middling credit score?

I don't want to be tied to one particular dealers finance company % rate.

I'm assuming there are HP companies out there willing to lend to individuals. 

Nearlyold

My Bank (Lloyds) offer HP/PCP/ where you choose a car from a dealer and arrange the finance yourself with the bank 

HappilyNorth

Nearlyold said:

My Bank (Lloyds) offer HP/PCP/ where you choose a car from a dealer and arrange the finance yourself with the bank 

Thanks, but I don't think a high st lender will accept me. I've already been "pre-approved" by a broker but they wouldn't offer finance on cars over 10 years old. 

I've heard of Moneybarn, Close Bros etc but I wondered if anyone had any personal recommendations?

Stateofart

It's much cheaper to get a loan from a reputable lender and pay the dealer from that.  How much do you really want this car?

CliveOfIndia

Stateofart said:

It's much cheaper to get a loan from a reputable lender and pay the dealer from that.

I'm of the same opinion - a bog-standard personal loan would probably be the simplest way.  Sure, in theory an HP arrangement should be a bit cheaper since it's secured on the car.  However .....

HappilyNorth said:

they wouldn't offer finance on cars over 10 years old.

I'd be very wary of taking out any sort of finance to buy a car of that age.  Don't get me wrong, I'm a firm believer in bangernomics, and personally have always bought older cars.  But I've always bought for cash that I've saved up.

The potential problem is that you take out a loan for, say, 3 years.  If the car dies after 2 years then you've still got to repay the loan, plus find the money to buy a replacement.

As I say, I've always run old cars, my current one is 16 years old and (touch wood) still going strong.  But you've got to expect some repair bills, if nothing else, with a car of that age.

If you're looking at a 10+ year old car, you'd be better off using savings.  And if you've not been able to put away a relatively small amount of savings each month for this purpose, how are you going to afford any loan repayments?

HappilyNorth

Stateofart said:

It's much cheaper to get a loan from a reputable lender and pay the dealer from that.  How much do you really want this car?

That's my problem. I don't really think a reputable lender will look at me. I would love it if they did. It's taken me a while to re-build my credit and I don't want to affect it with a "no" from Lloyds etc if I apply and they decline.

HappilyNorth

CliveOfIndia said:

Stateofart said:

It's much cheaper to get a loan from a reputable lender and pay the dealer from that.

I'm of the same opinion - a bog-standard personal loan would probably be the simplest way.  Sure, in theory an HP arrangement should be a bit cheaper since it's secured on the car.  However .....

HappilyNorth said:

they wouldn't offer finance on cars over 10 years old.

I'd be very wary of taking out any sort of finance to buy a car of that age.  Don't get me wrong, I'm a firm believer in bangernomics, and personally have always bought older cars.  But I've always bought for cash that I've saved up.

The potential problem is that you take out a loan for, say, 3 years.  If the car dies after 2 years then you've still got to repay the loan, plus find the money to buy a replacement.

As I say, I've always run old cars, my current one is 16 years old and (touch wood) still going strong.  But you've got to expect some repair bills, if nothing else, with a car of that age.

If you're looking at a 10+ year old car, you'd be better off using savings.  And if you've not been able to put away a relatively small amount of savings each month for this purpose, how are you going to afford any loan repayments?

I agree with much of that. The requirement of a car is relatively urgent though as our existing jalopy is only a 2 seater smart car. Therefore no time to save. I can afford the repayments and will more than likely pay it off in entirely within the next 12 months or so anyway. 

The model I'm looking at is a 10-12 year old mercedes diesel with less than 100k so should be fine banger wise. I'll have it checked before purchase anyway.  

WellKnownSid

HappilyNorth said:

• 10-12 year old
• mercedes
• diesel

Three things which should make you think very carefully about your choice...

stu12345_2

one big repair in that age of Merc will be the same price you are buying the car for

go and buy an old petrol  ford focus with a years mot for cash imo on eBay or Facebook marketplace 

macman

Your credit score is a fictitious number which lenders cannot even see. What they look at is your credit history.

HappilyNorth

WellKnownSid said:

HappilyNorth said:

• 10-12 year old
• mercedes
• diesel

Three things which should make you think very carefully about your choice...

when you put it like that you have a good point. Still, I'm tired of old, crappy cars with no comfort or refinement. I'm probably putting a child in it sooner or later so I want the build to be good as well. Perhaps I'll scrap the diesel idea though.