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HP Car Finance

Hire Purchase (HP) is the most common form of car finance and is simple and popular. 

You have a fixed monthly payment for a set period. Once you’ve paid the final amount, you own the car outright. 

Benefits include no mileage restrictions – perfect if you do lots of miles & No lump sum to pay at agreement end.

Hire Purchase Car Finance

Straight forward car finance with the benefit of no mileage restrictions and you own the car at the end.

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What are the advantages of using HP?

Hire Purchase gives you the clarity of knowing what set amount you have to pay monthly till the end of the agreement. If you do high mileage or need flexibility in the mileage you and do any don't want to incur expensive excess mileage changes then HP is ideal. Using HP also means that you don't have to come up with a large balloon payment at the end of the contract and...best of all, you own the car outright at the end of the agreement.

What are the minimum and maximum payment periods for HP?

Between 24 and 60 months.

Can I get out of my HP Agreement?

Yes! All Finance companies must give the option for you to settle payment during the course of the agreement. You simply need to contact the finance company and ask for a "settlement figure" (sometimes known as a redemption statement). When this is paid, the car is yours and the finance company will transfer full ownership to you.

Is Hire Purchase (HP) known as something else?

Conditional Sale (CS) is very similar to HP, the main difference is that at the end of the agreement you need to make a purchase payment (generally very small) in order to take ownership, whereas with Conditional Sale, on the final monthly payment the car automatically becomes your property.

Can I use "Voluntary Termination" under a Hire Purchase Contract?

Yes. Voluntary Termination (VT) is typically applied when more than half of what is owed on the car at the start of the agreement has been paid off. You may want to VT for a number of reasons but provided you are past the half way point, or you "make good" on paying half of the total amount (incl. any fees) then under the Credit Consumer Act 1974 you have the right to VT using the "rule of half".

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If you are looking for car finance, you are in the right place!

We have years of experience in car finance, a very extensive lending panel and a team that is set up to get you the car you want at the best finance rate possible. If you have already found a car and just need the finance – great! If you need help finding a car then we are there for you as well – in fact, we have access to over 300,000 cars.

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