Hire Purchase Agreements and Other Vehicle Loans

So you need a new car?
Making the right choice is important as will have an immediate impact on your current finances. There are many things that you need to consider. Here are some important issues that you will need to address before you apply for your next car loan.

Professional Vehicle Finance
Using a vehicle finance broker such as HSL Finance will make it much easier for you to find that much needed money to buy your new vehicle, be it a luxury / prestige car, caravan or even motorcycle than trying to do all the finance arrangements yourself. There are several types of car finance available on the market and making the right choice before you apply could make the difference between acceptance and rejection of your loan. HSL Finance specialise's in car loans and we can make it much easier for you to get that YES for the car credit you are looking for.

Choice of Finance Types
The vehicle finance types we are able to arrange for you range from unsecured loans to hire purchase agreements and even lease car finance. What's best for you? Here's a very basic definition of the main ways of financing your speedy purchase.

Secured loans are the most popular, regular payments made against an agreement. They usually have a lower interest rate as they are fixed against something of value such as your house etc. Consideration should be given to the length of time which it will take to "pay off" the credit agreement and whether or not you should add payment protection (PPI) to your loan. This type of motor finance will hold some collateral for you and are less risky for the car finance provider. It also means that the car will be yours and not the financiers from the offset.

A Personal Lease effectively means that you are renting the vehicle, so it will not actually be yours to own and you will have to return it at the end of the vehicles lease agreement term. Plus factors with a car lease include that any maintenance that may be required while you have the car is not your responsibility, as it is part of the package you get with the finance lease. But do watch for hidden extra charges such as mileage charges.

Hire Purchase Car Finance is very popular here in the UK, with hire purchase car finance you own the vehicle once you have paid more than a third of the finance credit on it. However if you fall behind on the payments the creditor still has the right to demand that you return the vehicle to them. If you decide to terminate your agreement voluntarily and hand back the goods to the creditor, you should only have to pay up to half of the total amount payable under the agreement, minus sums that you have paid and sums that are due. Sums that you have paid include any deposit plus the installments that you have paid; sums due are any arrears/missed payments due at the time of termination An Hire Purchase agreement does also give you the option of giving the vehicle back or "trading it in" after you have completed half the finance term.

Business's can also arrange for a Contract Hire Agreement. With this agreement The risk of ownership lies with the contract hire company. Once the rental period has expired, the vehicle is returned to the Contract hire company with nothing more to pay providing the vehicle has not exceeded the pre-agreed mileage and has fair wear and tear.

A part exchange is an effective way of part financing a new purchase. Simply put you could put the money you get for a part exchange towards the deposit on your new car or with many deals it is included in the finance price. Before you take your car in for part exchange at a car dealership, make sure that you have all the paperwork with you and that your vehicle does not require work to it if possible. This will help you to obtain the best possible price for your old. This money could then be put towards your new car as a deposit or may already be part of the new car finance deal.

Consider Your Circumstances: As with everything there are more options to hand, so you must consider your circumstances, affordability and practicality of financing your vehicle. If you are still in a quandary, why not read our other finance related articles for tips on the finance industry for further information, for here at HSL Vehicle Finance we cover car loans for prestige cars, asset finance, motorcycle and much more so why not let us give you a great deal on your next vehicle loan. To view what we can offer you, visit http://www.hslfinance.co.uk/pages/hire_purchase.lasso

Apply Online
HSL use a range of lenders to help secure the finance you need. When we get you accepted, we'll liaise directly with the dealer and arrange for you to visit them to sign the documentation. Within a few days we'll be able to pay the dealer and you will be able to drive away in your new car. CLICK HERE TO APPLY ONLINE

To qualify for our help if you have been Refused Car Finance elsewhere you will need to be:

• at least 18 years old
• Have Permanent Employed or be Self Employed
• A full UK resident with your main residency being in Britain

You will also need to have the following:

• A full UK drivers license
• Proof of income
• Proof of address

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