HP or Unsecured Loan

[sf88]

I am about to put a deposit down on a new car and will be putting approximately 50% cash and the remainder will be financed. I am first timer when it comes to financing a car and want to know the positives and negatives of an unsecured bank loan vs higher purchase when they are effectively the same APR. Loan = 2.9% and HP = 3%.

I was leaning towards the bank loan as it makes selling/changing the car easier with no outstanding finance against it. However a broker I spoke to earlier said that the unsecured bank loan could cause me issues when I come to remortgage and they may require me to repay the debt which has made me question it. Is this true?

[BeeBopp]

Nah, either HP or bank loan repayments would be assessed in a mortgage affordability so don’t differentiate on that basis.

Take the loan. HP has some particular features re return of asset and capping liability (voluntary termination) and lender can repo car if you miss repayments.

With a loan, car is yours.

[trowelhead]

BeeBopp said:

Nah, either HP or bank loan repayments would be assessed in a mortgage affordability so don’t differentiate on that basis.

Take the loan. HP has some particular features re return of asset and capping liability (voluntary termination) and lender can repo car if you miss repayments.

With a loan, car is yours.

+1 - i don't see any real benefit of the HP in this situation?