What You Can And Can’t Do During A Car Finance Agreement

What You Can And Can’t Do During A Car Finance Agreement

There’s nothing quite like that feeling of getting a new set of wheels on finance. We think you should be able to enjoy every minute of it, so we’ve put together a quick list of the dos and don’ts just so you’re in the know.

Here are some of the most asked questions about what you can and can’t do with a car on a finance deal:

Can you modify a car on finance?

You can’t make any alterations to a vehicle from Go Car Credit without getting our written consent first. Any alterations or replacements will become our property if you modify your vehicle at any point during your hire purchase agreement.

This is because you’re not the legal owner of the vehicle until you’ve fully paid for it. Until then, you’re the registered keeper of the car.

Can you take a car abroad when it’s on finance?

Yes, you are able to take a hire purchase (HP) car abroad with the appropriate insurance. If you have an agreement with Go Car Credit and you want to take your car outside the United Kingdom for 30 days or more, we kindly request that you get our written approval first, since we’ll be the legal owner of the car throughout the agreement.

Can you add a personalised number plate to a car on finance?

As the registered keeper of a vehicle, you’re legally allowed to change the number plates on it as long as you obtain the written consent of the lender. Of course, you need to make sure your new private plates are legal in the UK first, but you can put them on your financed car if you so wish. If you’ve got a HP agreement with Go Car Credit, simply get in touch with your request and we’ll be happy to help.

Is it possible to have more than one car on finance?

Yes, it’s possible to have more than one car finance agreement at once. It’s a common misconception that drivers are restricted to one car finance agreement at a time, but it all depends on your personal circumstances such as affordability.

Your credit history, for instance, will play an important role in determining your eligibility for any finance agreement, so the same goes for any additional agreements you might wish to explore for other vehicles.

Is there a mileage cap for cars on a HP agreement?

There is usually a mileage cap on your vehicle usage written into a PCP agreement, but this is not the case with HP deals. The cap indicates the maximum number of miles you can drive per year without incurring extra charges at the end of your agreement. At Go Car Credit, we do not charge for excess mileage on cars you hire from us.

Mileage caps are in place in PCP agreements to protect the condition of the vehicle in the event that it is returned to the lender at the end of the deal, when it may be rehired or sold as a second-hand car to someone else.

Can you sell a car that’s on finance?

In short, you can’t sell a vehicle you don’t own. As the registered keeper of a car under a HP agreement, you’re not legally allowed to sell it to another driver. You may only do this once you have fully paid for the car and signed to become its legal owner at the end of your agreement.

Can you transfer car finance to someone else?

Unfortunately, it’s not possible to transfer a car finance agreement to another person because it is issued according to specific individual circumstances. Your personal credit history and driving record, for instance, are taken into account when arranging a new HP deal, so they’ll naturally be different for any other driver.

If you already have a HP agreement with Go Car Credit, you may be able to organise a new deal under certain circumstances. Please get in touch with our friendly team if you’d like to discuss this.

Can you make an insurance claim on a car on finance?

Accidents can happen to any vehicle and insurance claims can be necessary to cover the costs of repairs. If you happen to suffer an accident in a car that’s on a finance deal, you must let your lender know, especially if you choose to claim for it. As part of your contract, you agree that any insurer’s payout will be made to the lender to cover the costs of the repair, since they are the legal owner of the car.

Do you have to get a financed car serviced?

As the registered keeper of a vehicle on a HP agreement, you are responsible for its upkeep and maintenance throughout the repayment period. This means that, whilst you don’t need to worry about general wear and tear, it’s up to you to keep it in good condition, which services can help with at regular intervals. Every car make is different, but it’s recommended that services are carried out every 12,000 miles or every 12 months, whichever comes first.

You can find out more about looking after your financed vehicle in our car maintenance guides here. If you’re interested in taking out a HP agreement on a new car, you can find out how the process works first and calculate your possible repayments here in our bad credit car finance calculator.