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HSBC Car Loan

The HSBC car loan is a part purchase scheme. You'll sign up for fixed payments now, then drive for a fixed term. Then you can either pay the balance, start again or hand the car back. Like all these deals, you'll pay more in the long run, but you'll know what your motoring expenses are in advance. Since motorists are hammered by the taxman and garages alike, that might be an attractive proposition!

HSBC Car loan examples (correct at publication date, uninsured):

  Monthly Repayment APR
£3000 across 2 years N/A N/A
£5000 across 5 years N/A N/A
£10000 across 7 years N/A N/A

Car Choice is the HSBC Car Loan, or more specifically, part-purchase scheme. Like all such schemes, the deal lets you pay a fixed rate across a fixed term, to have your choice of car for that term. You then have three options- pay a final instalment and the car is yours; pick another car and renew the contract, or simply walk away.

To understand what you're doing here, you need to know that cars depreciate most dramatically during the first year. So you will be paying for the majority of the value of the car, but only enjoying it for a set number of years. Quite simply, if you bought it outright, you'd get a better deal. So why do people use schemes like the HSBC Car Loan? Well, for starters this may well let you afford a better car than you thought you could have; by effectively only buying "part" of the car for "part" of its' useful life.

Secondly, this agreement is trouble free. The HSBC Car Loan includes options for fixed-price maintenance and an insurance scheme in case you should write off the vehicle. With fixed instalments on the price, this all adds up to entirely fixed-rate motoring; and oddly enough, it's often people on tight budgets who will benefit most from knowing in advance what expenses will be.

So if you don't like surprises, the HSBC Car loan could be right for you- with the usual caveat of course that plenty of other companies can provide this sort of deal, so do shop around.