HP – Hire Purchase
Hire Purchase offers the flexibility to repay the purchase of your car or van, with terms between 2 and 5 years. You also have the flexibility to put down as little or as much deposit as you like.
When you have paid off the finance agreement, and settled the option to purchase fee, the vehicle becomes yours.
You can enjoy a one-month payment holiday before your first instalment is due, with interest calculated from the day your agreement starts.
Some of our lenders will also offer longer deferred payment options, meaning you can delay your first instalment for up to 6 months, whilst taking delivery of your new vehicle immediately.
Pros & Cons
- No minimum or maximum deposit, giving you full control of your repayments
- Flexible repayment terms to suit your monthly budget
- Fixed interest rates, so you have confidence knowing your payments won’t change
- No mileage restrictions
- You don’t own the vehicle until you’ve made your final payment, which means the vehicle could be repossessed if you do not maintain contractual payments
- You cannot sell or give the vehicle away until you have paid all of the repayments under the finance agreement