Hire Purchase - Early Pay off advice please

Z

Zed Five

Senior member
Hello all. - advice needed please!

I have never bought anything on Hire Purchase, but am tempted to buy a BMW motorbike that way as they give a further £590 off.

Questions. Is there an upper limit to the amount of deposit that I can put down? I.e. are there rules to prevent me putting down 95% of the bike price, paying 3-4 payments of say £100 and then paying the balance?

Seems straightforward enough, but will they let me do it? Will there be a penalties on the final payment for doing it 21 months early??

Thanks in advance. (HP noob!) :D :)
 
I had the same issue with the Audi, buy on finance and you get another year warranty, £1000 extra trade in and 2 services. Not available on cash.

Took the finance, made 1 payment and paid off the rest after a month.

Just note that you will pay more than just the single first payment as there is a "Admin" charge and the payments are front loaded, i.e. the first few months are interest only and you are not paying anything off the main purchase costs.

All in all, peanuts compared to the savings but check against how the loading is done on the monthly payment.
 
Just make sure you check the facts on your deal though, as I don't even know the difference between HP and VW Finance. I was describing my Audi deal and how that worked out - can't guarantee it is the same with BMW :D
 
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