Hire Purchase (HP)

How does buying a car using hire purchase work?

Hire purchase is one of the many ways to finance a new or used car. The usual method is to pay a deposit and then pay off the rest of the cost of the car in monthly instalments. The total loan is secured against the car, so you don’t actually own the vehicle until the last payment is made.

Related Jargon

How does a PCP (Personal Contract Purchase) work when buying a car?

Personal Contract Purchase (PCP) is a way of financing the purchase of a car, with repayments covering the amount of money that the vehicle is expected to lose over the length of the agreement (usually three years).

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Cinch Cars Limited is an appointed representative of ITC Compliance Limited which is authorised and regulated by the Financial Conduct Authority (their registration number is 313486). Permitted activities include acting as a credit broker not a lender.

We can introduce you to a limited number of finance providers. We do not charge fees for our Consumer Credit services. We may receive a payment(s) or other benefits from finance providers should you decide to enter into an agreement with them, typically either a fixed fee or a fixed percentage of the amount you borrow. The payment we receive may vary between finance providers and product types. The payment received does not impact the finance rate offered.

All finance applications are subject to status, terms and conditions apply, UK residents only, 18’s or over, Guarantees may be required.

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