Cash or HP

[UKHunk]

when buying a new van from a dealer would it be best to pay cash,have HP via the dealership or arrange your own loan say via a bank or other means,Thx

 

[Guest]

Usually cash gives you a better chance of getting some extras. It is unlikely to give you a discount as the dealer would much rather sell you the HP and get the commision. Remember HP means you do not own the van untill all payments have been made.

A bank loan allows you the same leeway as cash to the dealership, however you are paying interest on the loan. At least the van is yours from day 1.

Basically if you have the money available from your own sources, then use it as it will be the cheapest way to buy the van. If not, get a bank loan and only if all else fails use HP from th dealer.

 

[Mikey1]

Hp is good as if you have a problem with the van during its loan period you dont actually own the van so the finance company take up your fight,with cash you are on your own.

 

[Surfer]

I would go for a large deposit with a low repayment over a period of 6 years which is the period covered by the Sale of Goods Act. That way you have the finance company to back you in case there is an issue. It worked for me.

If 6 years is too long and you have not had any real problems in the 1st 3 years, get a settlement figure and pay the balance. Paying the extra in Interest charges would be like having an additinal insurance warranty.

 

[ProfJohnL]

I would go for a large deposit with a low repayment over a period of 6 years which is the period covered by the Sale of Goods Act. That way you have the finance company to back you in case there is an issue. It worked for me.

If 6 years is too long and you have not had any real problems in the 1st 3 years, get a settlement figure and pay the balance. Paying the extra in Interest charges would be like having an additinal insurance warranty.

Hi Ian,

That's an interesting perspective, i had never thought of it like that before - good one

 

[ThePlotter]

The answer to this is not that simple if you use cash you will no longer have that available for emergencies and of course you will not get interest on it which would offset interest on HP/Loan.

A dealer will usually give you a better deal if you have a loan from them as they get commission.The interest rate at your bank may be cheaper but often isnt especially if you haggle on the rate with the dealer.

The biggest factor is that if you have the finance from the dealer for an amount between