Hire Purchase

Hire Purchase: A Simple Way to Finance Your New Car

Hire Purchase (HP) offers one of the easiest and most straightforward ways to finance your next car. You’ll enjoy a fixed interest rate and fixed monthly payments, so you’ll always know exactly what to expect. The repayment period usually ranges from 12 to 60 months, giving you flexibility to choose a term that fits your budget.

Once you complete all the payments, you own the car outright at the end of the Hire Purchase agreement. This makes HP a popular choice for people who want to drive a new or used vehicle without worrying about fluctuating payments or hidden fees.

How Does Hire Purchase Work?

First, you decide the deposit amount you want to pay upfront. You can adjust this based on your financial situation. Afterward, you’ll select the finance term, which is the period over which you’ll repay the amount—usually between 24 and 60 months.

Based on these details, the lender will calculate your monthly payments, including the interest that applies during the agreement.

Important Information

Please note that Hire Purchase finance packages depend on your status and require approval from the finance company. These packages are available only to UK residents.

When we mention Representative APR, we mean that 51% of our agreements offer rates at or below this figure. The actual APR depends on factors like the applicant’s financial profile, the model and age of the car, and the supplier. For example, you may receive a Representative APR of 8.15%.