Hire Purchase Under €7000

worc

Trying to get a hire purchase agreement from a bank on private sale car under €7,000 with 2005 or 2006 car and they won't touch it.

I know the pitfalls of HP but it's a business car purchase so it's in my interests to do it but the cars I'm looking at are all below thresholds the banks seem to have on value or age...almost being forced to buy a car €3,000 more than I want to avail of tax benefits.

Anyone know of a bank that would accept HP agreement for under €7,000 car from 2005 or 2006?

bazz26

I think you have two problems here:

1. A private purchase, Finance companies only want to deal with legitimate garages, not private individuals.
2. The age of the vehicle, they will not finance anything over a certain age (4 years I think) because if you default on your HP agreement they have to be able recoup most of the debt through selling the vehicle.

wonski

worc wrote: »

Trying to get a hire purchase agreement from a bank on private sale car under €7,000 with 2005 or 2006 car and they won't touch it.

I know the pitfalls of HP but it's a business car purchase so it's in my interests to do it but the cars I'm looking at are all below thresholds the banks seem to have on value or age...almost being forced to buy a car €3,000 more than I want to avail of tax benefits.

Anyone know of a bank that would accept HP agreement for under €7,000 car from 2005 or 2006?

Your only option here is to apply for a loan from your bank.
Car is yours straight away, you only have to worry about loan repayments.
And if things go wrong - hope not - you can sell the car and use the cash to pay off your loan account. Win-win really.

bazz26

wonski wrote: »

Your only option here is to apply for a loan from your bank.
Car is yours straight away, you only have to worry about loan repayments.
And if things go wrong - hope not - you can sell the car and use the cash to pay off your loan account. Win-win really.

It's being bought through the OP's business so from a tax perspective it probably makes more sense to go down the HP/leasing route.

wonski

bazz26 wrote: »

It's being bought through the OP's business so from a tax perspective it probably makes more sense to go down the HP/leasing route.

Sorry, didn't notice the tax thing... He would have to fork out a bit for a newer car anyway - i can't see any bank doing HP for old car...
I do understand where they are coming from - if things go wrong in the future, they will be left with car with no value to them at all.
And the private sale is no no in this, and any other case anyway.

worc

Cheers for the input!

Yeah some limit it to value of car + age, some are just value and some just age.

wonski wrote: »

I do understand where they are coming from - if things go wrong in the future, they will be left with car with no value to them at all.

Yeah it's a real pain, they want nowt to do with me going private and have to purchase from a main dealer too...so paying premium for the damn thing. What's more annoying me is I have enough in the bank to pay for two of the bloody cars I want but they still won't accomodate.

Ah well they have their rules and I must abide, maybe see if I can land a 2005 320D now instead of the original A4.