HP 1/2's & 1/3's Handback & Flat rate
Discussion
I'm currently well beyond 1/2 way in my current HP finance agreement & I'm thinking about using the hand-back clause in said agreement.
As this clause is a part of my agreement, I see it that I'd be acting within the terms of the agreement, and the hand-back should not have an adverse effect on my credit record.
Just wondered if anyone has any 1st hand experience of this HP hand-back clause? and am I correct to think that it wouldnt muck-up my credit rating?
Secondly - the car I'm looking at has been offered to me on a new HP agreement @ 5% flat rate (£13495 / 60mnths @ 5%). Is this a decent flat rate percentage in the current market?
As this clause is a part of my agreement, I see it that I'd be acting within the terms of the agreement, and the hand-back should not have an adverse effect on my credit record.
Just wondered if anyone has any 1st hand experience of this HP hand-back clause? and am I correct to think that it wouldnt muck-up my credit rating?
Secondly - the car I'm looking at has been offered to me on a new HP agreement @ 5% flat rate (£13495 / 60mnths @ 5%). Is this a decent flat rate percentage in the current market?
If it weren't in the t&c's of the agreement, then I'd expect that a hand-back could effect your credit rating - but as its in the agreement, then I dont think it should effect you as you have acted in the way which you agreed you would.
I have enquired with my finance company, who didnt seem updset or mention any un-favourable conciquence of a hand-back(which you might expect they would if they wanted you to continue making payments until the natural end of the contract) - they just posted a form which confirms any balance/fee and tells me what to do next.
Anyone with any thoughts on the current 5% flat rate I've been offered?
I have enquired with my finance company, who didnt seem updset or mention any un-favourable conciquence of a hand-back(which you might expect they would if they wanted you to continue making payments until the natural end of the contract) - they just posted a form which confirms any balance/fee and tells me what to do next.
Anyone with any thoughts on the current 5% flat rate I've been offered?
I'm not getting mixed up between HP & APR, nor blinded by what looks like a better deal by a lower % quoted for a HP deal.
I am aware that a personal loan from a high street bank would give me a better APR and therefore lower monthly payment BUT I do like having the ability to hand-back which HP provides.
..I see it as a safety net should my circumstances change OR if as has happened to me before the car is worth less than I could get for it (negative equity).
Do you know if it is possible to arrange your own HP finance? I've looked round on the net but can only find Personal Loans.
I am aware that a personal loan from a high street bank would give me a better APR and therefore lower monthly payment BUT I do like having the ability to hand-back which HP provides.
..I see it as a safety net should my circumstances change OR if as has happened to me before the car is worth less than I could get for it (negative equity).
Do you know if it is possible to arrange your own HP finance? I've looked round on the net but can only find Personal Loans.
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