Hire Purchase Agreements and Other Vehicle Loans

Golden Rules When Looking At Various Car Loans and Car Finance Options:

1. Compare like with like when approaching various institutions. Also compare like for like when it comes to the products you have been offered.
2. Always ask for details of the APR (Annual Percentage Rate) on your loan, the size of the monthly repayment over 12, 24, 36, 48 and even 60 months, and what the actual total amount will be that you have repaid by the end of your loan / finance period.
3. Get all the options, would you be happier with a fixed interest rate or a flexible variable rate? In hard times it is easier to budget when you have a fixed rate loan and when the economy is doing really well then it is safer to go for a flexible package as your interest rate could go down with the base rates.
4. Consider very carefully if you would like to actually own this vehicle when you have made the final payment. A hire Purchase Agreement is one way to do just that. So is a personal loan. A car lease plan would not be the logical choice here.
5. Is your loan an business or private arrangement. There are many tax benefits which can be made with certain finance deals. Speak to one of our specialist car finance advisors today on 01787 373806. They would be more than happy to answer any questions you may have on financing your next car.

So you need a new car?
Financing that new car could be more tricky than you first thought. Consulting a new car finance broker like HSL Finance would make it far easier for new car buyers to make the correct decisions! Remember that once a contract for finance is signed by you, you are locked into a repayment scheme for a pre determined number of months and the cool off period is generally only 15 to 30 days.

You certainly don't want to make a mistake before you sign. The rate you get is related to your amongst other factors your credit score and credit history, employment status and other outstanding monthly payments you currently make.

HSL finance has a team of dedicated motor finance consultants who would gladly answer any of your questions about a personal car loan, car contract hire, leasing new vehicle, manufacturerís deals, interest free finance or part-exchange deals that your local authorised car dealership could be offering you. 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 the latest sports motorcycle by Honda or Suzuki. it's far easier to speak to HSL Finance when making arrangements to buy a car.

Did you know that depending on personal circumstances many applications for car loans are rejected because the applicant has applied for the wrong type of available car loans. Our business specialise's in securing car loans and we can make it much easier for you to get that much needed acceptance.

Choice of Finance Types The 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.

Financing the purchase of a new car can be very confusing, with such a wide range of car finance options available to you. Do you get a personal loan or do you go with a manufacturer's deal and part-exchange your current vehicle? Do you wnat to take a finance lease or hire purchase? Should you go for a personal loan and do you really want to be tied in to a personal unsecured loan simply to buy a car? Personal Loan Top Ups are never as cheap as they may seem at first! Here we highlight the most common ways that car finance is raised:

1. Hire Purchase : This option is offered on new and used cars by dealers and can be fairly easy to arrange. With Hire Purchase, you pay a deposit which is an amount you are generally able to arrange by mutual consensus during initial negotiations. The reason being that the regular monthly payments are simply adjusted accordingly. You can also choose from fixed or variable interest rates which again are based on the amount of finance you need to secure once you have made the deposit payment. With a hire purchase car buy you will actually own the vehicle once payments are completed.

It is important to note that until the very last payment is made you do not own the vehicle, your car finance company does! So don't miss any payments once you start making them, as this may well show on your credits history file! You get to negotiate the deposit and borrow the balance against the car. With Hire Purchase car payments you always know how many payments are outstanding. This is a great way to budget your finances.

As with many loan types interest rates may vary, but it is often found that hire purchase interest rates can be very competitive against those secured/offered by bank loans. Taking out a Hire Purchase Agreement will often mean that your finance company will allow you to increase your payments should you be able to afford to, also they could allow you to extend the loan period after a pre determined number of months should your finance situation change.

Businesses also benefit from buying Vehicles on hire purchase as they do not pay tax on the payments and they are able to show the vehicle as an asset which is therefore depreciable! Businesses benefit in other ways too from loaning money to finance a works vehicle in this way for their fleet and HSL Asset Finance is available for further enquiries.

2. Remortgage : While you may spend the next 20 to 25 years paying for your car, remortgaging may seem like the cheapest way to borrow unless you get interest-free finance, but this is not the case. Please don't be fooled by this type of finance, all is not what it seems. If you are a homeowner, most mortgage companies will allow you to borrow more for other things like car purchase. What then happens is that you are taking out secured lending on a depreciating asset. Good finance companies would not recommend this! When borrowing money it is an unwritten rule of thumb that you complete payment for the goods you borrowed money to buy before those good become obsolete or without value. The best option in our opinion is to borrow money for no longer than the life of the asset you are buying! With a car that is generally around 3 to 5 years.

As always it is your choice and remortgaging is one way to secure money to buy goods like cars, so is unlocking your pension before you retire, but HSL Finance would simply draw your attention to the negative side of doing this!

3. Personal Contract Purchase : Personal Contract Purchase or PCP is an extremely popular choice for new car buyers. Personal Contract Purchase gives new car buyers a flexible finance option with low monthly repayments (Dependent on how you structure your deal). How it works is that your finance package is based on the agreed balloon payment at the end of your loan term. A balloon payment is defined as the Guaranteed Future Value of the vehicle in question. The Guaranteed Future Value is then added to the deposit you are able to make and subtracted from from the price you pay for the vehicle with your monthly payments. Naturally the interest you pay is still calculate including the Guaranteed Future Value though. This then helps determine your deposit and also referred to as your initial payment. You then make an agreed amount o monthly payments from between 12 months and 48 months. At the end of the term you make a final lump sum payment and the car is then yours, or you hand the car keys back to the dealer of finance company and walk away. It is also worth noting that you should discuss the annual mileage allowance for the contract as if you do not do as much driving as you first anticipate you could be paying more than you really need to. Work this out carefully before you make your final decision. Now days this is a popular choice not only due to the way in which this finance option lowers your monthly payments, but also due to the fact that many car buyers now change the vehicle after 2 to 4 years for a new model. This form of finance (PCP) allows you to do this when your contract period comes to an end.

4. Car Loan or Personal Loan : A personal car loan can be arranged separately from the purchase of a car, making you a cash a ëcashí buyer on the dealer floor. You would often be entitled to a payment holiday when you take out car loan and you are free to approach banks, finance brokers such as HSL Finance or your local building society. You may be encouraged to take out an additional insurance policy to protect you should you loose your job or have a serious accident making it difficult or impossible for you to make the expected monthly payments on the loan. This is because your loan is not secured on your personal assets. If the loan is not protected, and your ability to keep up the repayments may become harder or in some cases impossible. If you are ever in this situation it is always the best option to contact your lender in good time before you are due to make the next payment. They are sure to try and help you. Leaving the payments to be missed will only upset your lender and also affect your credit score. Interest rates may also be higher for this type of finance agreement.

A part exchange is another great way to help buy a new or part used car. technically though it is not a actual product, it is really just another way of selling your car and putting the money you get for your cars sale towards the costs of a new one. This is the reason we have not listed it as number 6 on the above list. It is important though so we do still wish to bring your attention to this aspect of buying a new car. The new car dealership will often take your old car in exchange for money off your deposit or in some cases which obviously depend on the quality and value of your current car as the full deposit value against your new car. 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. It is always advisable to present your part exchange car as best you can and the dealer will often look for any excuse to knock off a few pound where ever possible for work that he will say is need ed to sell the car on himself. A wise choice if you have the patience is to sell your car privately as this is where you will get the most money back for the vehicle. The choice is yours.

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. If you are looking to buy a new car we can aslo help arrange your car for you if you like. We have some fantastic cars available on Contract Hire for both business and personal buyers here at HSL Car Finance, visit Contract Hire Finance For Cars

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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