Hire Purchase

cormie

Hi,
Thinking of getting a newer 2nd hand van on some kind of finance deal. Probably be looking at a Long wheel base, high roof van with 7 seats (driver, 2 front passengers and 4 in a crew cab) with roof rack.

Does anyone know how easy it is to be approved for these and would it be better to try for a loan and buy private, or just do it through a dealers scheme?

If the cash price was €12,000, and I wanted to pay back say €80 a week (150 weeks/3 years until it's paid off), what is the average price I'd be looking to pay extra on such an agreement does anyone know? And has anyone ever successfully haggled a no interest deal on the basis that the garage is getting profit from the sale itself and if they want to make the sale, they'll have to cut the interest on the finance. I'll be trying that anyway;)

As soon as I get it, I'd want to brand it with my business logo etc, would this be ok if I use the hire purchase scheme since it wont actually be mine till I pay it off? Also, will I be the registered owner of it and would it just be the same as insuring a car I bought outright myself with insurance companies?

I'll leave the "what van" questions till later:)

cormie

Has anyone any experience with this or any other hire purchase agreement?

colm_mcm

You have pretty much no chance of getting zero percent finance on a used van.

12 grand over 36 payments should work out at 375 per month. this works out at 86 euro per week.

At 8% APR, the interest works out just under 1500

cormie

I suppose that wouldn't be too bad. Does anyone know, can I sell the car even if it's not fully repaid and still pay off the finance anyway?

What about branding it with business logos etc? Is that all ok on a financed van?

Glanza V

hire purchase is a joke. just get a bank loan. with the hire purchase, you must pay a big deposit then you pay your crappy small instalments and then you pay a big ammount at the end. you also dont own the car until the last payment.

From my school days of business studies I was always told that hire purchase was a waste of time and it has so many strings attached. Most people are financially stretched in todays Ireland, and this could only make it worse.

cormie

I heard it was cheaper to do it hire purchase in the long run though

Glanza V

no..... interest is like 18%. Go to a bank or credit union and its 8%

MercMad

hire purchase is a joke. just get a bank loan. with the hire purchase, you must pay a big deposit then you pay your crappy small instalments and then you pay a big ammount at the end. you also dont own the car until the last payment.

......not true. You can dictate what final baloon payment you want if any. They may be flexible on the deposit but the advantage is you tailor your monthly payments to your needs.

You should be able to sign write on it, as most commercial vehicles are bought this way.

Also you can ask what the percentage rate being used is and they have to tell you. Since a finance company will be involved they will have a base rate so no chance of haggling it down to zero. they just wont take it on, unless there is a deal, Opel have these regularly !

If you are not registered for VAT then you obviously cannnot reclaim it, but you should tell this to whoever you are buying from as they will assume you have a VAT number and may quote excluding VAT !

cormie

Thanks for the info:) I'm guessing the finance deals usually just apply to new vehicles so a bank would probably still be the better option loan wise?

Savman

cormie wrote:

Hi,
Thinking of getting a newer 2nd hand van

Hallelujah! :D

Last year I got HP on a van, €11.5k over 3yrs @ €380p/m, no big deposit or balloon payments. Interest-wise it might not be the best deal but it was one of the few available to me at the time.

colm_mcm

Glanza V wrote:

hire purchase is a joke. just get a bank loan. with the hire purchase, you must pay a big deposit then you pay your crappy small instalments and then you pay a big ammount at the end. you also dont own the car until the last payment.

From my school days of business studies I was always told that hire purchase was a waste of time and it has so many strings attached. Most people are financially stretched in todays Ireland, and this could only make it worse.

That's an absolute load of rubbish. Nobody's charging 18% on HP. anywhere between 6 to 8.5 is the norm. Where did you get your figures from. Bank of Ireland's personal loan rates are 10.5 to 11.5% at the moment. HP does not require a deposit and you do not have to pay a baloon payment at the end (you can only do this on a new vehicle anyway) if you don't want to.
If you don't know the facts about something, don't be misleading the OP

In the ideal world of leaving cert business studies, nobody has any problem getting big loans from the banks, but in the real world, where cormie doesn't have a big business or lots of assets, a finance agreement that is secured on the asset is probably the only way to go.

cormie

Hmm, not too sure what to do, my van broke down AGAIN today so will be dishing out another 500 bills for repair. I'd love to just get rid of it and get a 00 or 01 model (the new model transit), but I've been told you can only get finance on the newer (more expensive) vehicles? I'd say about 8K would do me though, 3 of which I could probably get from my current van.

Savman

Off the road again? eeek. Think about it, the €500 you spend fixing that would be 1-2 months repayments. Seriously consider it...

RoundyMooney

cormie wrote:

...3 of which I could probably get from my current van.

Eh, you paid €2,300 for it first day IIRC?

I'd look at bringing one in from the UK tbh, I brought in a lovely 03 Transit Connect with a mate last year, cost minus VRT and ferry was approximately €4k, and that included the VAT.

A no-brainer really.

cormie

Paid 2,300 knowing it needed work done to it, 400 on a clutch was a big part of that. Average price of a 99 is about €3,500 and I reckon I got a good deal on the 2,300 so I reckon with the clutch ok, and if I get it passed its DOE which is due soon, and taxed for a year, I could get 3K for it, maybe 4:p

I think if I can get approved for HP, I'll go for it.

Roundy, how long, between waiting times etc would it take to get driving a van from the UK if I went shopping tomorrow? I can't afford to wait around:(

RoundyMooney

It took us a week to set it up.

I wouldn't even think about it unless you bring someone who knows what they're at though.

Autotrader is a good resource if you're shopping around, there are many dealers there who specialise in selling vans.

I would also suss out the VAT situation with any prospective seller before travelling.

cormie

I think for now I'll just keep to Ireland, might consider it in the future though! I've enough complications to get through at the mo:o

RoundyMooney

Well, you'd be looking at a bank/credit union loan to bankroll it, as opposed to a finance agreement. Figures would need to be looked at.

If you have relatives or friends in the U.K., you could probably source somebody over there to inspect the vehicle, or go with the A.A. perhaps.

In any event, if you want to save money and get a quality vehicle, it's the way to go IMO.

By the way, cutting up vehicles to make up an ideal seating arrangement is not a good idea, unless you're on very good terms with a coachbuilder.

Why do you need seven seats anyway?

edit: I found several 03/04 vans on vantrader.co.uk within your budget, many with five or seven seats...