Hire Purchase
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.
With Hire Purchase you will pay a deposit, followed by fixed, regular payments until the full cost of the vehicle and interest 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 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 Hire Purchase 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
If you wanted to buy a car listed for £10,000 through a hire purchase agreement lasting 4 years (48 months).
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.
Finance to suit you
Other Types of Car Finance we offer
PCP
PCP finance is a flexible way to drive a new or nearly-new car with lower monthly payments. You pay a deposit, followed by fixed monthly payments — and at the end, you can choose to keep the car (by paying a final balloon payment), hand it back, or part-exchange it. It’s ideal if you like to change cars every few years.
Lease purchase
Lease purchase is similar to hire purchase but includes a larger final payment at the end. It’s a great option for buyers who want lower monthly payments and plan to own the car long-term. Unlike PCP, there’s no option to return the vehicle — so it’s perfect if you’re committed to keeping the car.
Whats right for you?
Car Finance Options Compared
| Feature | PCP | Hire Purchase | Lease Purchase |
|---|---|---|---|
| Monthly Payments | Usually lower | Higher | Lower due to balloon payment |
| Final Payment | Optional balloon payment | No balloon payment | Required balloon payment |
| Ownership | Optional | Yes, after final payment | Yes, after balloon payment |
| End-of-Term Options | Keep, return, or upgrade | Keep only | Keep only |
| Mileage Restrictions | Yes | No | No |
| Best For | Newer cars & flexibility | Long-term ownership | High-value vehicles |
| Condition Requirements | Must be good (charges may apply) | No condition check | No condition check |
| Vehicle Age Suitability | New or nearly-new | New or used | New or used |
| Actions | View More Apply Now | View More Apply Now | View More Apply Now |
