Hire Purchase explained
Hire Purchase lets you spread the financed cost of a vehicle across agreed monthly repayments.
How HP payments work
You pay an agreed deposit and then fixed monthly repayments over an agreed term. Each repayment reduces the balance you owe, as set out in your agreement.
At the end of the agreement
Once every required payment has been made (including any final amount set out in your agreement), the vehicle is yours.
Ownership
With HP, the finance company normally remains the legal owner of the vehicle until the final payment is made. You keep and use the car throughout the agreement.
Deposits
Deposit sizes can usually be adjusted to suit your budget — a cash deposit, a part exchange, or a combination of both. The exact options depend on the finance provider and your agreement.
Early settlement
You can usually settle the agreement early. Ask us and the finance provider will confirm any settlement figure and how any rebate is calculated.
Things to consider
Because HP repays more of the vehicle price during the agreement than PCP, monthly payments can be higher. Missing payments can affect your credit record and put the vehicle at risk.