12-11-2014, 03:59 PM
Hi,
Personal loan. If things go pear shaped, you can sell the car, keep the money, and just keep making the payments.
Hire Purchase. If you can't keep up the payments, you can't sell the car (unless its for enough to pay off the debt). If you don't keep up the payments they will snatch their car back, and hit you with everything they can. You won't get a mortgage.
However there is (was?) a "funk hole" if things get serious. There should be a clause on the HP agreement saying that if you have paid at least half the purchase price of the car (including the deposit) and the car is in good condition ... you can simply hand it back. Not a nice hit to take, but if push has come to shove, it might be the best option.
Let's hope it doesn't come to any of the above.
602[/u]
Personal loan. If things go pear shaped, you can sell the car, keep the money, and just keep making the payments.
Hire Purchase. If you can't keep up the payments, you can't sell the car (unless its for enough to pay off the debt). If you don't keep up the payments they will snatch their car back, and hit you with everything they can. You won't get a mortgage.
However there is (was?) a "funk hole" if things get serious. There should be a clause on the HP agreement saying that if you have paid at least half the purchase price of the car (including the deposit) and the car is in good condition ... you can simply hand it back. Not a nice hit to take, but if push has come to shove, it might be the best option.
Let's hope it doesn't come to any of the above.
602[/u]