Hire Purchase (HP)

Hire Purchase (HP) can be a good way to buy a car if you want to spread the cost of purchasing across monthly payments and own the car at the end of the agreement. 

You can voluntarily terminate your HP car finance early by returning the car if you’ve paid over 50% of the total amount. You can also pay the full cost early to end your agreement. There may be additional fees to consider. Contact your provider for a settlement figure.​​

HP finance might be the better option for you if you want to own your car outright at the end of your agreement. HP doesn’t have a ‘balloon payment’ at the end of the contract like PCP does, and there’s no option to return the car unless you voluntarily terminate your contract early. ​

How easy it is to get approved for HP car finance will depend on things like your personal circumstances, credit history, and the finance amount you’re applying for. You might be able to get a soft credit check for HP finance or a loan before you apply to see if you’re likely to be accepted. ​

​The main difference between HP and CS car finance is that there will typically be a small ‘option to purchase’ fee at the end of your HP contract. This fee will be outlined in your agreement before you begin.

The financial products we offer include Hire Purchase, Conditional Sale, Fixed Sum Loan, PCH, and PCP, although these may vary from time to time.