Advice on future HP

[theberengersniper]

Hi all,

 

In the next few months I'm going to order a new car that I'll finance through Hire Purchase, arranged through the manufacturer (BMW). That decision is based on having discounted PCP as a viable option for me given the mileage I cover.

 

My question is what pitfalls are out there to watch for when arranging HP, for example, is it possible for a manufacturer (or their credit partner if they do things that way) to write into their terms and conditions anything that would make VT impossible? Or, is is possible for some alternative form of finance to be sugar-coated as HP when in fact it's some form of loan?

 

I have read a fair amount of material on HP and in fact I've VTd a car myself in the past, however this time round I plan on entering into the HP knowing full well that I intend to VT at 50% and given the value of the car I intend to buy, it's pretty important I don't run into any situations that would stop me from doing so.

 

Please accept my apologies if this should be in the General section, I wasn't sure.

[theoldrouge]

Read the t&cs carefully before signing

 

With an hp agreement vt is a statutory right

With pcp any excess mileage would also be payable in addition to the vt

[Conniff]

Be certain before you sign anything that this is in fact Hire Purchase and not a Lease agreement. It will say 'Hire Purchase Agreement' at the top of the agreement.

 

 

Is this an interest free loan ? If so, check with some other dealers around the country how much the cash price of that particular model is and ask if that is the lowest price they can offer.

If there is a discount and it makes the deal you are looking at not so attractive, then take a look at a bank loan and compare that with the BMW loan.