What is Hire Purchase?
Hire Purchase is a common way of financing a vehicle purchase.
You’ll usually pay a deposit towards the vehicle, and then pay off the remaining amount in equal monthly instalments – with interest charged every month. There are sometimes additional fees, such as Option to Purchase, which we’ll cover below.
At the end of the Hire Purchase contract, you’ll own the car.
Jump to:
• How does Hire Purchase work?
• What is Conditional Sale?
• How long do HP contracts last?
• HP contract cost and deals
• Pros and cons of Hire Purchase
• Ending HP contracts
• Alternatives to HP contracts
You’ll usually pay a deposit towards the vehicle, and then pay off the remaining amount in equal monthly instalments – with interest charged every month. There are sometimes additional fees, such as Option to Purchase, which we’ll cover below.
At the end of the Hire Purchase contract, you’ll own the car.
Jump to:
• How does Hire Purchase work?
• What is Conditional Sale?
• How long do HP contracts last?
• HP contract cost and deals
• Pros and cons of Hire Purchase
• Ending HP contracts
• Alternatives to HP contracts