When arranging HP, specify the deposit amount you can make. This is flexible, to an extent, and will have an effect on the monthly repayment figure. The deposit could also affect the interest APR figure that is offered to you, and this rate will be fixed. HP is regularly a cheaper alternative to an unsecured loan, with the added advantage of no impact on your personal assets.
Plans run for between one and five years. Should interest rates generally begin to rise, the fixed nature of HP means your monthly payments will not change. An 'option to purchase' fee will become payable at the end of the term. Alternatively, it is also possible to return the vehicle once the HP agreement ends.
You only become the legal owner of the vehicle when all payments have been made. During the HP term, you are prohibited from selling the car or modifying it. The debt is also secured against the car itself, so if you fall behind with payments it will be repossessed.
Speak to a car finance specialist at Coventry Motor Company to arrange HP or other finance on MG, Mazda and Suzuki models.