Cancelling HP Finance Before Collecting the Car

Options
bungle86
bungle86 Posts: 2 Newbie
in Loans
Hey all, totally new to this and really need some help.

My dad, foolishly, signed an agreement in principle with Vauxhall a few days ago for a used car. As part of the agreement they performed searches and offered him HP finance @ 15.9%!

Now the car he wants is fine, but i don't really want him taking HP when he can get a loan for the same value for 3.4% APR saving him well over £50 on the repayments and shaving £'s off the final fee.

The question is this... if he walks away from the finance now will this impact him negatively?

Thanks

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    The worst that will happen is that it will show as a closed account.

    If he does it within the cooling off period, not even that.
  • molerat
    molerat Posts: 31,864 Forumite
    Name Dropper Photogenic First Post First Anniversary
    Options
    No. He can cancel the finance within the 14 day cooling off period and it is treated as if it never existed. The only possible negative is that the search footprint will stay.
  • MEM62
    MEM62 Posts: 4,754 Forumite
    First Anniversary Name Dropper First Post
    Options
    bungle86 wrote: »
    I don't really want him taking HP when he can get a loan for the same value for 3.4% APR saving him well over £50 on the repayments and shaving £'s off the final fee.

    Final fee?

    Are you sure this is HP? Sounds like it could be PCP to me.
  • bungle86
    bungle86 Posts: 2 Newbie
    Options
    Thanks all, thats really clear!
  • PRAISETHESUN
    PRAISETHESUN Posts: 3,723 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    You can cancel the finance within the cooling off period (usually 14 days). Just be aware that depending on the terms of the sale, cancelling the finance doesn't always remove any obligation to complete the sale (ie. you still have to pay and can't just return the car).

    From what you say, your dad still wants the car just with a better finance deal so just keep in mind what the fallback might be if he can't actually get approved for the loan he's eyeing off.
  • Clive_Woody
    Clive_Woody Posts: 5,855 Forumite
    Name Dropper First Anniversary Photogenic First Post
    Options
    bungle86 wrote: »
    Hey all, totally new to this and really need some help.

    My dad, foolishly, signed an agreement in principle with Vauxhall a few days ago for a used car. As part of the agreement they performed searches and offered him HP finance @ 15.9%!

    Now the car he wants is fine, but i don't really want him taking HP when he can get a loan for the same value for 3.4% APR saving him well over £50 on the repayments and shaving £'s off the final fee.

    The question is this... if he walks away from the finance now will this impact him negatively?

    Thanks
    Has he got the loan offer confirmed in writing at 3.4%?
    "We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Name Dropper First Post First Anniversary
    Options
    I was wondering that too - is the new loan at a lower rate in place?
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards