It is okay to buy a new car with car finance, but you need to get the eligibility checker as a credit score is the main factor in helping you get the financial deals. Purchasing a vehicle with finance is the better option if you have a large sum of cash at hand. But making a good purchase, you need to take a finance check before buying from the used car market. Further, read more about
- Which financial deal works for you?
- Hire purchase or loan
- What happens if I have a financed car?
Car Finance Or Loan: Which Is Better?
Choosing the next new car, which option you prefer to go to? Personal loan or hire purchase
- Hire purchase is one of the ways to finance a new or used vehicle. It needs you to invest upfront and pay off the monthly investments. But the ownership of the car is with the finance company until you settle the debts. You can own the vehicle once you settled the hire purchase.
- A personal loan is another financial deal where you can get the loan from the bank or finance provider only when the credit rating is fair. Ensure you have the secured loan against your home because putting your home at risk is not a good choice when you fail to repay. But, through a personal loan, you can own the vehicle as soon as you purchase it.
Shall I Keep The Hire Purchase Vehicle?
If you purchase a vehicle that has a hire purchase deal on it, what are the legal rights to keep the vehicle with you?
If you have a financed vehicle, you can't enjoy the ownership as the finance company owns it until you settle the debts. But you can keep the vehicle with "good title" even if it still holds hire purchase debts. In cases like,
- If you are unaware that the vehicle has outstanding finance, but you purchased it unknowingly.
- If you are a private buyer- It means you don't buy the vehicle to hire or sell.
- .Considerably, if you are the first owner to buy a financed car or else in case of not the first buyer, you still have the "good title" when the previous owners had it
You can probably find the various consumer acts to protect the financed car buyers where they don't have a good title to the vehicle. Either they can purchase it from the private seller, trader or company, and still, there is the slightest chance of getting back the money you spend on it.
But it is not for the long term as you can't keep the vehicle without stress. And still, you are in debt to the finance company and have to repay & follow their terms and conditions. It is the reason you are advised to check vehicle details before, and possibly you can avoid landing up with the dodgy seller.
What Happens If You Do Not Do A Finance Check On A Used Vehicle Before Buying It?
It is stressful when you found the vehicle has still debts after a month or later as you are liable to repay the remaining debts to the finance company. It is a fact that the UK used car market has one in three cars with potential issues that are hidden behind low-cost offer from the seller. So, the only way to identify is through the finance check, and you will get an alert if there any other risks to it. But few motorist things to diligence for taking free car finance check.
If you even bought the vehicle from a good note or a reputed dealer, you can't ignore the issue once you found the vehicle with finance. You have to face the consequences of having such a vehicle as you can't prove that you are unaware of the finance on it, and the finance company can't trust you in few cases. It leads to you as you have to take responsibility for settling someone's debts which is double the investment.
- The car with finance is currently in your hand, and you have to take responsibility for any other issues. It can be write-off or stolen.
- As already said, the finance company owns the vehicle till you settle the debts, so till that, you can't enjoy car ownership.
- In case of not repaying within the given period, you have to give back the vehicle to them. It means you lost the vehicle and the money.
You are suggested to buy a new vehicle with finance but can't ensure you have the financial strength to repay the debt. But it worsens when you have to pay for the used car finance, and you have the choice to take the alternative HPI finance check from Car Analytics at £8.95. So, before accepting any offer, check the vehicle details and stay away from risking yourself.