When buying a car last year one of the unexpected decisions I found I had to make was a loan vs HP.

To be honest, I had been literally about to buy a used Picasso - had the forms out at the showroom, and had started to sign - but when it came to the HP agreement I started to chicken out - I didn't like that they threw a sudden £160 admin fee at me without warning, and I suddenly started to question if HP was the right thing for me - not least that the car would still belong to the HP company until an alloted time.

As I was suspicious of the quality of the car, and didn't trust the salesman - a bit too high-pressured - I just walked out.

In the end I got a loan on the grounds that at least the car would belong to me regardless, and there were less restrictions on how I could use it (such as mileage, etc).

I figure HP probably works better for some items - ie, domestic products and consumer electronics - what do you think?

I've still got some HP agreements running but some of them have been a nightmare. Sometimes I've really expected a knock on the door to reclaim my purchases but luckily things have never gotten that bad so far.

I think really you have to weigh up the benefits vs cons of a HP agreement over a loan. This would vary dependant upon the situation and the article in question.

You should never feel pressured into signing anything and if you do feel that way... walk away... as it will (in most cases) be the right decision and allow you time to think about the offer in front of you without having to make a snap decision.

If anyone ever tells you to sign or the offer is withdrawn... again walk away... as its just a sales technique they use to pressure you to sign.

Cheers

Corty

Hire purchase could be cheap but the fact is everyone is out there to make a living and if they are not mopping your mistakes, they will go broke.