Hire Purchase
A consierge service for everyone.
Hire Purchase Overview
Hire Purchase is a finance product used to purchase a car that allows you to repay the finance over a defined period. You hire the car for a set amount of time with the view to purchase the car at the end of the agreement.
Usually, you will pay a deposit, followed by fixed, regular payments until the full cost of the vehicle has been covered. Once the final payment has been made you will then have ownership of the vehicle.
The finance is secured against the car and the interest rate charged is fixed for the term, you will not fully own the car until the last payment has cleared. If you are a private individual or a business, this is a simple and effective way to purchase a car with fixed regular payments. Available from 24 to 60 months.
Car finance tailored to you
How does HP work?
- Choose a car you want finance for.
- Agree on a length of term, the deposit, and the monthly payments for your agreement.
- You pay the set monthly payments that have been agreed.
- Once the car is paid for in full (the last payment has been made), you will be its owner.
What are the benefits of HP
You decide the length of your contract.
Payments are fixed for the entire length of your contract; this makes it easier for you to budget.
When you have paid back the full repayable amount, you are free to opt for Voluntary Termination (VT) – Meaning you can hand the car back if you need to
No Mileage restrictions
Finance to suit you
HP Finance Example
Let’s say you want to buy a car listed for £10,000 through a hire purchase agreement lasting 4 years (48 months).
You put down a deposit of £1,000 and get offered an APR of 10.9%.
Your example breakdown might look a little something like this:
Car Value | £10,000 |
---|---|
Deposit | £1000 |
Amount To Finance | £9,000 |
APR | 10.9% |
Total Repayable | £12,037 |
Term | 48 Months |
Monthly Repayment | £229.67 |
Car Owned At The End Of The Agreement? | Yes |
*Note: The APR you’re offered will be dependent on your credit rating and the lender you’re borrowing from.