Hire Purchase (HP) Finance

Hire purchase is one of the most popular options for those seeking vehicle finance. Hire purchase or ‘HP’ is a finance agreement. The vehicle is bought from the financier over a specified time period. When the loan amount has been settled, the customer gains title to the vehicle.

The repayments are calculated to encompass the cost of the vehicle and the rate at which the loan is provided. The time period is set by the financier. At the end of the contract, the consumer has the option to purchase the vehicle by paying an ‘option to purchase fee’ or to terminate the agreement by settling the remaining balance.

A Hire Purchase gained its name as the finance provider ‘hires’ the vehicle to the customer. This period of hire is over a set time period, which usually ranges from 12 to 60 months. The vehicle is the property of the finance company until all repayments have been settled and the option to purchase fee has been paid. The customer is responsible for the upkeep of the vehicle and will be the recorded keeper of the vehicle on the log book or v5 document. It is an offence to sell the vehicle without informing the finance company. Should the customer decide that they no longer wish to purchase the vehicle, the vehicle must have been kept in a ‘good condition’. Hire Purchase agreements do not have any restrictions on mileage, however any damage accrued to the vehicle, which is beyond ‘reasonable wear and tear’, is the responsibility of the customer.

A Hire Purchase agreement can be settled at anytime during the contractual period by settling the outstanding balance. Should the customer wish to purchase the vehicle, they will also be required to pay the option to purchase fee. In most cases, any surplus interest will be rebated to the customer by the finance company. If the Consumer Credit Act regulates the Hire Purchase agreement, the minimum amount to be repaid is stipulated by the Finance and Leasing Association.

Once all outstanding balances have been settled and the option to purchase fee has been paid, the title of the vehicle is passed to the customer.

Ready To Apply For Finance?

Use our easy step by step application form to apply for finance for the dream vehicle you want.

Finance Calculator

Our car finance calculator is a great estimation tool to see what you could afford to borrow. Simply use the sliders to see an example of what your monthly payments could be. Rates will differ based on your credit rating. Amounts proposed are an estimate, credit is subject to status and is not guaranteed.

Quick Finance Quote

Would you like a quick quote, or just to speak to a member of our team? Leave us some contact details and information on how much you would like to borrow. One of our customer account managers will be in touch to get more details and discuss your options further.

Apply For Finance

Our online finance application form is quick & easy to complete. You can rest assured that we will make every possible effort to help you obtain the car credit you deserve. We will treat your car finance application in the strictest confidence and maintain your privacy at all times.

Car finance icon

Why Choose Us?

All Credit Histories

We specialise in all credit histories including those who have previously struggled gaining credit or may have a poor credit history. If you are looking to buy a new or used car and you have a bad credit car finance rating, apply online using our easy to complete car finance application form.

Choose Any Vehicle

You can choose to deal with any reputable motor dealer in your local area or we can recommend a reputable motor dealer to you from our approved dealer network. Then simply leave it to us to find you a fantastic finance option with affordable monthly repayments, tailored to your circumstances!

Finance For You

We tailor credit for all of our customers based upon their circumstances. Our skilled staff try to source the best finance option for you, first time, and are there to support you throughout your finance agreement. Rest assured we will make every possible effort to help you obtain the car credit you deserve.

Get in Touch

If you have any queries please get in touch on 01482 459066 or fill in the form below