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HP V CP advice please

Discussion in 'The UK and Ireland' started by sam48, Jun 12, 2019.

  1. sam48

    sam48 Member

    Joined:
    Mar 3, 2019
    Messages:
    15
    Location:
    Scotland
    struggling to decide between contract and hire purchase.

    If I go via HP I can get the 35k interest free loan. If I add another 10k to the deposit monthly cost comes in at around £1300. I work as a sole trader so would get roughly £400 a month as a tax break bringing cost to around £900. That would be my absolute limit. The advantage is that interest costs would be around 6k and at the end I would own the vehicle.

    Contract purchase with a 10k deposit and the above tax break brings cost down to £720 a month. That feels like a more comfortable number but interest payments over the same 4 year period is 15k and there is a large balloon payment at the end.

    Apart from monthly cost HP looks like a better option. Anyone’s advice of experience of either option would be early appreciated.

    Cheers
     
  2. Yev000

    Yev000 Member

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    Location:
    Knaphill
    would help if you list which car you are looking at
     
  3. pjuk

    pjuk Member

    Joined:
    Mar 27, 2019
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    Location:
    North London
    Since you are based in Scotland can you not apply for this interest free loan for EVs?

    Electric Vehicle Loan
     
  4. sam48

    sam48 Member

    Joined:
    Mar 3, 2019
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    15
    Location:
    Scotland
    Performance model X. White, 7 seats. I wouldn’t go for FSD or ludicrous
     
  5. sam48

    sam48 Member

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    Location:
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    estimated cost is 96k. Estimated residual value 30k!
     
  6. gangzoom

    gangzoom Member

    Joined:
    May 22, 2014
    Messages:
    298
    Location:
    Uk
    There are some really good 'deals' Tesla are pushing on inventory cars. Wouldnt surprise me if you can nab a LR X for under £70k brand new as end of Quarter approaches.

    DON'T pay list price on a S/X at the moment.
     
  7. Peteski

    Peteski Active Member

    Joined:
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    Messages:
    2,611
    Location:
    UK, Milton Keynes
    It would be a no-brainer for me to take the interest free loan and HP. A saving of £9k on finance and the whole of the balloon payment makes it well worth an extra £180 per month along the way.
     
  8. sam48

    sam48 Member

    Joined:
    Mar 3, 2019
    Messages:
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    Location:
    Scotland
    Thanks for the advice. Much appreciated
     

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