What is Hire Purchase (HP)?
Hire purchase is a popular type of car finance. It is sometimes shortened to HP and proves popular with young drivers and families alike.
At the start of a hire purchase agreement, you will usually pay a small deposit towards the vehicle. The bigger a deposit you can put down, the less you are borrowing and the less your monthly payments will be.
Then, your monthly payments are calculated and are spread over the agreement. An agreement can be anywhere between one and five years long depending on what you are looking for. The payments are fixed so there will be no increased or nasty surprises. Although, do note that should you miss a payment, the car can be taken away.
At the end of the agreement, you will own the vehicle. Sometimes there is a small option-to-purchase fee which is usually the cost of one months finance. This will be detailed out in the agreement before you commit to anything.
There are plenty of benefits of hire purchase, with the main one being you get to drive your car away at the start of the agreement, instead of saving and waiting until you have the value in full. Another benefit is that you own the car at the end, so you have been working to pay something off that is yours. Due to the nature of finance, it often means you can afford a nicer or a newer can than you could if you were paying outright too.
Applying for finance is quick and easy. You fill out our online application in less than two minutes and we will get back to you with an answer. Once we have agreed the finance, choose a car and we will sort the rest. It really is that easy with We Finance Any Car.