Is there any reason you would not take a HP loan from the bank

colly10 · 15-03-2014 08:54PM #1

I have seen that some people are very critical of HP but the APR is a good bit lower than a personal loan.

I understand that you do not own the car until the final payment but it would be a bad idea to take out a loan that you don't plan to pay back in full anyway.

I was wondering if there is something i'm missing, why would anyone choose a loan with higher repayments over a HP loan (assuming their confident of job security)?

colm_mcm · 15-03-2014 08:55PM

If you want to change the car before the finance is finished you have to settle the loan first. Ie you'll pay more interest.

Atlantic Dawn · 15-03-2014 08:58PM

Look in to the fees associated with it, sometimes the banks have larger fees associated than dealer loans.

colly10 · 15-03-2014 08:59PM

colm_mcm wrote: »

If you want to change the car before the finance is finished you have to settle the loan first. Ie you'll pay more interest.

That clears it up, thanks

colly10 · 15-03-2014 09:01PM

Atlantic Dawn wrote: »

Look in to the fees associated with it, sometimes the banks have larger fees associated than dealer loans.

It's a HP loan direct from the bank, i'd buy private and it's cheaper (as long as I don't want to settle early)

mickdw · 15-03-2014 09:02PM

Will they do a hire purchase on a private sale?

colm_mcm · 15-03-2014 09:04PM

mickdw wrote: »

Will they do a hire purchase on a private sale?

No.

colly10 · 15-03-2014 09:05PM

mickdw wrote: »

Will they do a hire purchase on a private sale?

I presumed so, i havn't seen anything in the T&C's on who I can purchase from. I'll call them to be double sure

bazz26 · 15-03-2014 09:57PM

colly10 wrote: »

I presumed so, i havn't seen anything in the T&C's on who I can purchase from. I'll call them to be double sure

No they won't. They will insist on it being from a dealer.

Is there any reason you would not take a HP loan from the bank

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