Hire Purchase (HP) Explained
Your guide to Hire Purchase (Also known as HP) finance
What is HP car finance
Hire Purchase is a car finance product that allows you to budget accurately by giving you a fixed interest rate and fixed monthly payments. You can tailor the deposit and the monthly payments to suit your budget, if you decide to you can settle the agreement.
How HP works
- You pay a deposit at the start of the agreement
- Throughout the agreed term you pay a fixed monthly payment
- Once you've paid your final monthly payment you will own the car without any large payments at the end.
Benefits of HP finance
- Flexible - agreements can vary from one to five years
- Fixed monthly payments & interest rate - no surprises
- Own the car - once you've made all the payments
Things to consider with HP finance
- Payments - If you miss more than once payment, your vehicle could be repossessed
- Owning the car - You won't own it until you make the final payment