ab350z Posted August 7, 2009 Share Posted August 7, 2009 Folks, I've got a question about the ins and out of car finance. The cars I've been looking at will probably require a few extra pennies. I've been given fairly reasonable finance quotes but i'm worried that the finance is attached to the car and if I decide to sell before the term is up then its something that'll show up on HPi as having outstanding finance, despite the fact I'd always use the sale to cover the finance left. Its a bit of a grey area for me as i've only ever gone down the personal loan route for financing in the past. Quote Link to comment Share on other sites More sharing options...
Lincolnbaggie Posted August 7, 2009 Share Posted August 7, 2009 When I bought mine the guy had finance from Nissan on it - it came up on the HPI (he'd already said it would), but I rang back two days later and they confirmed the finance charge on the vehicle had been removed when he paid it off. It must be something that comes up all the time on second owner cars. I wouldn't be too worried about it. Quote Link to comment Share on other sites More sharing options...
marzman Posted August 7, 2009 Share Posted August 7, 2009 Folks, I've got a question about the ins and out of car finance.The cars I've been looking at will probably require a few extra pennies. I've been given fairly reasonable finance quotes but i'm worried that the finance is attached to the car and if I decide to sell before the term is up then its something that'll show up on HPi as having outstanding finance, despite the fact I'd always use the sale to cover the finance left. Its a bit of a grey area for me as i've only ever gone down the personal loan route for financing in the past. Whats the difference between car finance and a personal loan? Im interested as i cant ever see myself being able to afford a new(er) car! Quote Link to comment Share on other sites More sharing options...
IanS16 Posted August 7, 2009 Share Posted August 7, 2009 Personal load isn't attached to the car. Finance is Got my car on finance and although it is working out okay for me at the minute, if I ever lose my job and need to sell the car on I cant as i payed £16,750 +interest and I doubt it's worth £13,000 now so I'd be left with a large shortfall. Quote Link to comment Share on other sites More sharing options...
maxi-glasgow Posted August 7, 2009 Share Posted August 7, 2009 I have bought a few cars on HP attached to the car, if you don't intend keeping a car long term it's a good way of being able to change every few years. As once you have paid half you can simple hand the car back and the debt is considered repaid, not a lot of people realise this and don't make use of it. That's the difference with HP on the car and a personal loan. A personal loan cannot be written off by handing the car back etc, you need to pay it in full. Quote Link to comment Share on other sites More sharing options...
marzman Posted August 7, 2009 Share Posted August 7, 2009 Personal load isn't attached to the car. Finance is Got my car on finance and although it is working out okay for me at the minute, if I ever lose my job and need to sell the car on I cant as i payed £16,750 +interest and I doubt it's worth £13,000 now so I'd be left with a large shortfall. But isnt that just the same as a personal loan though? Or are you not legally allowed to sell the car? Quote Link to comment Share on other sites More sharing options...
M13KYF Posted August 7, 2009 Share Posted August 7, 2009 Personal load isn't attached to the car. Finance is Got my car on finance and although it is working out okay for me at the minute, if I ever lose my job and need to sell the car on I cant as i payed £16,750 +interest and I doubt it's worth £13,000 now so I'd be left with a large shortfall. But isnt that just the same as a personal loan though? Or are you not legally allowed to sell the car? With Finance they could take the car back. With a personal loan they'll demand the money back if any default in payments happens Quote Link to comment Share on other sites More sharing options...
ab350z Posted August 7, 2009 Author Share Posted August 7, 2009 I know as a buyer I would be put off slightly, in the same vein as if the car showed up as a cat d or recovered stolen despite assurances. The rate i'm getting on a specific car finance is better than i'm getting on a personal loan or secured loan against mortgage, dont really want to be adding to my mortgage with the current climate. Quote Link to comment Share on other sites More sharing options...
marzman Posted August 7, 2009 Share Posted August 7, 2009 So the rates of car finance are better than for a personal loan? Any examples? Quote Link to comment Share on other sites More sharing options...
stanski Posted August 7, 2009 Share Posted August 7, 2009 Hmm not sure about that mate - unless its some 0% interest for 3 years or something at the dealers - my personal experience - I will never take finance on a car ever again - always get a personal loan or better still save up the money ! Quote Link to comment Share on other sites More sharing options...
ab350z Posted August 7, 2009 Author Share Posted August 7, 2009 Hmm not sure about that mate - unless its some 0% interest for 3 years or something at the dealers - my personal experience - I will never take finance on a car ever again - always get a personal loan or better still save up the money ! Yeah this is my line of thought, obviously the more I can put in myself the better in the long run. Got myself a family owned Polo as a run around so some cheap motoring for a while cant be a bad thing then readdress the purchase around Xmas when hopefully some deals are to be had. Quote Link to comment Share on other sites More sharing options...
Gaz Walker Posted August 7, 2009 Share Posted August 7, 2009 So the rates of car finance are better than for a personal loan? Any examples? Most personal loans are better really, just depends if you get a deal by the dealer or manufacturer, which is unlikely. Gaz Quote Link to comment Share on other sites More sharing options...
Sarnie Posted August 7, 2009 Share Posted August 7, 2009 I know as a buyer I would be put off slightly, in the same vein as if the car showed up as a cat d or recovered stolen despite assurances. The rate i'm getting on a specific car finance is better than i'm getting on a personal loan or secured loan against mortgage, dont really want to be adding to my mortgage with the current climate. Finance on a car is effectively the same as a mortgage for a car as it is secured against the motor, hence you may get a decent rate. A personal loan is not secured against anything other than you as an individual therefore the rate may be slightly higher than finance. Nobody should be put off buying a car that has finance outstanding. Just ensure that you get the finance details and pay the balance of the finance direct to the finance company and pay the difference the the seller. Quote Link to comment Share on other sites More sharing options...
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