Hire Purchase (HP) Car Finance

Hire Purchase (HP) is a type of car finance that allows you to spread the cost of purchasing a vehicle across a contracted period.

You’ll pay a deposit, and then cover the remaining cost of the car with your fixed monthly repayments until your car finance contract comes to an end.

There is a small ‘option to purchase’ fee that’s included in your final payment, which you’ll be made aware of when you sign your HP car finance agreement.

You might choose a finance car if you don’t want to pay the upfront cash price and spreading the cost seems a better alternative.

HP car finance gives you the ability to make monthly payments towards the cost of your car. This can be more manageable than buying a car outright, and you can tailor your HP finance agreement to suit your needs by adjusting your deposit or the length of your contract.

1. Find your perfect HP used car – we offer HP car finance on all cars available on our site, so you can browse our range to find the model that suits your needs.

2. Pay a deposit – you’ll need to pay an initial deposit before beginning your monthly repayments, with a higher deposit meaning these monthly payments will be lower.

3. Apply for HP car finance – once you’ve put down a deposit, you’ll need to apply for HP finance by providing some personal details to see if you’re a good fit.

4. Start your repayments – if you get accepted for an HP finance agreement, you’ll begin making your fixed monthly repayments until the end of your contract.

Benefits

• Fixed monthly payments

• There’s usually no mileage restriction, so no excess mileage charges

• You’ll own the car at the end of your contract

• You might be able to return the car when you’ve paid 50% with voluntary termination, should circumstances change

• Some lenders may offer HP to those with poor credit history

• You may get the option for a relatively low deposit, depending on the lender and the car

Things to consider

• You’ll need to pay an initial deposit

• You don’t own the car until your final payment

• Usually you have to pay a small ‘option to purchase’ fee at the end of your plan. If you are offered a Conditional Sale agreement there is no such fee. The car ownership is automatically transferred to you.

• You’re not able to sell or modify the car until you officially own it

• Monthly payments are usually higher than PCP due to there being no optional ‘balloon payment’

You can get an HP finance quote by visiting the listing for your ideal car and using our finance calculator.

We also have a car finance eligibility checker that can help you see if you’re a good candidate for Hire Purchase.