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Home > hire purchase

Hire Purchase Finance


Hire Purchase (HP) is a finance product that allows you to budget accurately thanks to fixed interest rates and monthly payments. It is the simpler of the two finance options that we offer. To put it literally, with HP you are hiring the car until the end of your agreement, when with your final payment you purchases it.

HP deals can be tailored to you and your budget by simply adjusting the length of your agreement (usually from 1 to 5 years) and the amount you pay as an initial deposit. Typically the deposit will be around 10% of the total value of the car but in some instances it could be more or you could even come away with your new vehicle having paid no deposit. Your monthly payments will be affected by the amount you pay as a deposit but that is all down to your personal needs. It really is up to you.

The vehicle being purchased acts as the security for the finance arrangement which means that you will not be closed off from other lines of credit that you may want to take advantage of. As a result of this, the vehicle is the property of your finance company until you make the final payment, but this is helpful if you need to take out any other finance agreements in your life and it also means that is much easier to secure a HP deal than another form of loan, even with a poor credit score.

Because of the flexibility of Hire Purchase arrangements, you are able to settle your agreement at any time, without financial penalty. You can even trade your car in if you are done with the car or want an upgrade and a new payment plan can be arranged. Best of all, once you have completed your final payments, you will take full ownership of the vehicle and then that is it!

Benefits of Hire Purchase

  1. Spreading the cost means that you can afford a better car than you would have been able to if you paid upfront
  2. Simple to understand with less variables than PCP
  3. Agreement is flexible and can be as long or short as you make it!
  4. You own the car at the end of your agreement
  5. Easier to get approved on, especially if you have a poor credit score
  6. Car acts as security so you aren't closed off from other forms of finance