Cars Hire Purchase Benefits

6 replies

3LoudBoys · 29/08/2019 00:50

DH and I always clash on this one. I prefer to own a car outright where as he loves a brand new car on hire purchase. 😤 I just don't see the point? What are the benefits so I can stop always being so cross at him? Thanks in advance.

OP posts:

PhilCornwall1 · 29/08/2019 06:19

I can see your point. When we had to buy cars, they would be about 12 to 15 months old. I get a company car, so it's replaced after 3 years, so don't really have to worry.

My wife has a car and we bought that at just over 12 months old. Brand new cost of her car was just shy of 20 grand, we paid 10 for it with 12k miles on it and the balance of a five year warranty remaining. We'd have been mad to buy brand new and never would.

WhoKnewBeefStew · 29/08/2019 06:34

Benefits are you get a brand new car without having to cover all the depreciation (I say all as you still pay for this in your monthly payments)

With a new car you get the warranty, reliability - and of course it's a new car

You know exactly how much you pay each month, plus it's a new car

You get to upgrade to a new car every X amount of years.

Tbh it's just a difference of opinion between you and your dh. You're comparing apples with oranges and each has its pros and cons.

adaline · 29/08/2019 06:45

There are benefits to both - it's just personal opinion what you prefer really.

I'm like you and prefer owning outright but that's because I hate owing money. I'd much rather pay say, 3 grand upfront for a second hand car and have no monthly payments. Others would rather have the monthly payments - perhaps because it's easier to budget or they can't afford the whole amount upfront.

siriusblackthemischieviouscat · 29/08/2019 20:06

I remember a friend telling me how excited they had been to pay the finance off of their car and how much better off they would be per month. A few years down the line her car was starting to fail and they really needed another car. Unfortunately they had got used to having that extra money and now couldn't afford to get a loan for the car.

Her advise was never stop paying for a car, you always have a newish car which is covered under warrantee. We have stuck to that and have our 6th new car in 10 years (for last four we have run two cars at once).

BadLad · 29/08/2019 20:53

If it's on HP, it's safe from the people on Can't Pay? We'll Take It Away.

Ontheboardwalk · 29/08/2019 21:06

I agree with sirius friend once you stop paying monthly for a car it’s a big leap to suddenly find the cash each month again

I usually try to buy the car outright then sell the car at 3 years to my mum (who then has a good car with not a lot of miles, a sensible ish previous owner at a very good price)

I then use the cash from my mum as deposit for a new car and repeat the process. I’ve never paid more than £15k for a new car. It's my treat for myself.

Saying that my mum was eyeing up a brand new car a couple of weeks ago!

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