Hire Purchase

Affordable monthly car finance payments

Happy Man Interested In Finance

£

15000
£0 £30,000

£

0
£0 £3,000
3
12 months 60 months
4
1,000 miles 15,000 miles

Finance representative example

  • PCP PCP HP
  • 49 monthly payments £332.91
  • Deposit £1,999.80
  • APR 13.9%
  • Fixed rate of interest 6.7%
  • Cash price £17,998.20
  • Total amount payable £27,521.73
  • Term 49 months
  • Amount of credit £7,523.73
  • Annual mileage 8,000

Affordable Hire Purchase Finance Deals with Carbase

If you want to buy and own your car at the end of the finance deal with no balloon payments, a HP finance contract may be right up your street. With a range of affordable monthly payments our finance team will help you get the car you want at a price you can afford.

Our sales team will help you identify which monthly payments you can afford and help you find the car that suits your budget. Our responsible and tailored used car service ensures you get the right car and a price you can afford.

Hire Purchase facts

  • Fixed Interest Rate
  • Deposit and term can be adjusted to find the monthly payment that suits you
  • The finance is against the vehicle
  • Other forms of credit will remain available for future use
  • Agreement can be settled at anytime
  • At the end of the agreement you have full ownership of the vehicle

What is Hire Purchase?

Hire Purchase (HP) is a finance product that allows you to budget accurately thanks to fixed interest rates and monthly payments. With HP you are effectively hiring the car until the end of your agreement, when with your final payment you purchase it and the car becomes yours.

HP deals can be tailored to your requirements by simply adjusting the length of your agreement (usually from 1 to 5 years) and the amount you pay as an initial deposit. Typically, a deposit will be around 10% of the total value of the car; however, a 0% deposit may be an option.

With HP financing your new vehicle acts as the security for the finance arrangement, ensuring that any other lines of credit that you may wish to take advantage of remain open to you. Because of the flexibility of Hire Purchase, you are able to settle your agreement at any time, without financial penalty. You could also upgrade before the original arrangement is complete and a new payment plan will be organised for your new vehicle.

Benefits of Hire Purchase

  • It enables you to purchase a more expensive car than if your deposit alone was used
  • It is simple to understand and arrange
  • The finance agreement is flexible and can be ended at any point
  • At the end of your agreement you own the car outright
  • It is easier to get approved on, especially if you have a poor credit score
  • The car acts as security so you are not closed off from other forms of finance

How does hire purchase work?

Will bad credit affect your ability to buy a car on Hire Purchase?

What are the advantages of Hire Purchase?

What are the disadvantages of Hire Purchase?

How does my credit history affect the interest rate?

General Terms and Conditions. Please note you will not own the vehicle outright until all payments are made. If you default on your finance payments, then the vehicle may be repossessed by the finance provider. You must be 18 years or older to apply for finance. Finance is not guaranteed, and any finance application is subject to a credit check and individual circumstances. If you require any further information, please do not hesitate to contact us. The finance provider will have their own Terms and Conditions, please contact them directly for further information.

Sub-prime finance is not guaranteed and may cost more than finance provided by a prime lender. We will try to obtain finance for you but there is no guarantee. It may be from a sub-prime lender, and if so, the cost of finance may likely be at a higher rate than prime lenders offer.