Buying a car through hire purchase
Car hire purchase (HP) is one of the simpler methods of obtaining a car loan. The initial deposit is usually quite low, you then hire the car for a monthly payment and have an optional buy price at the end of the loan term. Hire Purchase is not ideal for everyone, it requires a good credit history to begin with.
What is hire purchase?
Hire Purchase is a way of securing a loan for buying a used or new car from a car trader or private seller. After paying an initial deposit, you will then pay off the value of the car over a repayment period in monthly intallments. The car loan is secured against the value of the car.
This means you don’t own the vehicle until the last payment is made.