Hitachi Capital: Stapleford and Cabair.

[monkeytribe]

Has anyone used the hitachi capital scheme to fund their PPL? I am considering using this to fund the PPL but are there any drawbacks to using it?

It states that it's a 0% loan.


Any advice would be appreciated.

[ALEXA]

Since nothing is for nothing, they are either increasing the stated rate per hour flown or charging some form of finance fee that isn't strictly interest.

So: divide the total amount you would repay Hitachi by 50. That gives an hourly rate under the scheme, everything apparently included, but ask if anything extra is required.

Ask the school what their hourly rate is for dual instruction on the aircraft type in the Hitachi scheme and add on £8 per hour fuel surcharge (current Cabair rate, don't know about Stapleford) and £10 per hour landing fees (an approximation) and multiply by 1.175 to add VAT.

Compare the two.

And ask for a copy of the credit agreement - there should be a clear explanation of the finance charge (if any) and ask what the APR is.

That ought to flush out the cost of financing.

And - 50 hours isn't achieved by many - expect it to take a bit more

Alexa

[stapleford1]

I am not aware of the details of the scheme via Cabair Flying Schools.

At Stapleford the hourly rate is the same, whether paid per hour or through Hitachi Capital. Since the price of fuel has now decreased significantly Stapleford have removed all fuel surcharges. There are no landing fees applicable at Stapleford Airfield. Therefore if you ask Stapleford for their hourly rate this is what you pay.

The APR is nil and the finance charge is nil.

Hope this helps.

[east_sider]

I work in asset finance and as said above there is no such thing as 0% finance - someone is subsidising the loan somewhere. The basic concept is "Time value of money", ie would you rather have £90 now, or £100 in a year? You'd probably take £90 now. What about £90 now, or £150 in a year?

Doesn't mean it isn't a good option for you - Citroen sell most of their cars on 0%, essentially the manufacturer subsidises the customer's finance, to persuade the customer to buy their product over a rival. Maybe the school subsidise the finance to encourage more students to sign up, and commit to a full 50 hour+ course not disappear off to florida after a few cancelled lessons!

Read the small print carefully. Most finance agreements are heavily regulated under the Consumer Credit Act, and you can usually cancel for a certain period if you change your mind.

[Norfolk Newbie]

Just a quick point.... If something is advertised as 0% finance then it has to be 0% for the client in the UK. This is covered both by the consumer credit act and by the financial services and markets act (depending upon which regulation applies - CCA here).

Basically if you are paying more overall a deal cannot be 0% by its definition. Also if a company is offering a 0% deal it is illegal for them to accept less money for a cash transaction for the same product.

On a final note, "interest free" and 0% are considered synonymous by the UK regulations for this purpose.

Obviously as has been commented, somebody somewhere is taking a hit, but it shouldn't be you.