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        General >> Off Topic Subjects >> Car Finance?
        
(Message started by: Daniel on Feb 17^th, 2013, 1:21pm)

Title: Car Finance?
Post by Daniel on Feb 17^th, 2013, 1:21pm

Hi All
Can anyone explain car finance? I am thinking of getting a car on a per month contract but there are a few things i am not sure of.

Do i pay per month until the car is paid for?
Do i own the car after the contract is over?
Do i have to take a loan or can i use my wages?
I will be self empolyed is there anything stopping me from being accepted?

I would like ascorpio but they want nearly 5 grand a year to insure :( so a new car is the cheapest by a long way to insure (almost 3 grand less).
Anyone know the aanswers?
Cheers
Dan :)

Title: Re: Car Finance?
Post by Mike H on Feb 17^th, 2013, 2:07pm

Haven't done anything like this for a long time, but unless the rules have changed -

A. had to be a loan
B. paid over a maximum of 3 years only
C. paid monthly
D. you don't own it until finished paying off the loan
E. fully comp insurance req.d

Title: Re: Car Finance?
Post by PJDavis on Feb 17^th, 2013, 3:54pm

Except 'D'. In Scotland as soon as you've paid more than half the loan, you then legally own the car! Hoorah for Scotland! ;D

Title: Re: Car Finance?
Post by Matt on Feb 17^th, 2013, 4:07pm

Not sure how it works on second hand cars but on mine when i bough new

A. yea but you'll end up paying more then what the car is worth, normally the last payment is a bigger amount as it also includes the settlement fee

B. yes its yours, but you cannot sell it while you still have outstanding finance on it.

C. either, mine comes from my wages, depends on how much deposit they want up front.

D. bad credit, ccj's etc. it can be a bit more tricky.

E. buy a scorpio to do up, keep it sorned for a year then insure it once you have a ncb. Or ring round or go to an insurance broker, they'll do a battery price then the websites

Title: Re: Car Finance?
Post by Daniel on Feb 17^th, 2013, 7:23pm

Thanks lads :)matt, if the right scorpio comes up i dont hink i could leave it lol would have to be a cossie though ;D

Title: Re: Car Finance?
Post by Daniel on Feb 17^th, 2013, 7:34pm

one more thing

Whats the difference?

PCP Finance
LP Finance
HP Finance

???

Title: Re: Car Finance?
Post by Snoopy on Feb 18^th, 2013, 8:25am

Google them here is an example of
Quote:

PCP Personal Contract Purchase (PCP) is one of our most popular car finance choices, offering great flexibility.

Together with a low deposit, low fixed monthly payments and a guaranteed future value, it means PCPs are an all-round perfect package. See our PCP EXPLAINED page for more information.

Quote:

LEASE PURCHASE

Lease Purchase is ideal for the more expensive car and for customers wanting even lower monthly payments

The benefits of lease purchase are:

low monthly payments and APR
Lower and higher deposits available
No mileage contract
You can Re-finance the Residual Value

Title: Re: Car Finance?
Post by Daniel on Feb 19^th, 2013, 9:11am

Thanks snoopy ive figured it out now. :)