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Hire Purchase (HP) Explained

Hire Purchase is a straightforward way to buy a car with fixed monthly payments. At the end of the agreement, you own the car outright.

View Cars with HP Finance

How Hire Purchase Works

A simple step-by-step guide to HP finance

1

Choose Your Car

Select the vehicle you want to purchase

2

Pay Deposit

Make an initial payment (typically 10-50%)

3

Monthly Payments

Pay fixed amounts over 24-60 months

4

You Own It

Car is yours with no further payments

Pros and Cons

Advantages
  • You own the car at the end of the agreement
  • No mileage restrictions - drive as much as you want
  • You can modify the vehicle to your liking
  • Build equity in the car as you pay
  • No balloon payment at the end
  • Can sell the car at any time (subject to settlement)
Considerations
  • Higher monthly payments compared to PCP
  • You're responsible for the car's depreciation
  • Can't easily return the car if circumstances change
  • Larger financial commitment over the term

Is HP Right for You?

See if these scenarios match your situation

High Mileage Driver

Perfect if you drive more than 12,000 miles per year

"Sarah drives 20,000 miles annually for work. HP means no excess mileage charges."

Long-term Ownership

Ideal if you plan to keep the car for many years

"John wants to keep his car for 8+ years. HP means he'll own it outright after 4 years."

Modification Enthusiast

Great if you want to customize your vehicle

"Mike wants to add performance upgrades. With HP, he can modify freely as the owner."

HP Finance Glossary

Understanding the key terms

Ready to Find Your Next Car?

Browse our inventory and see HP finance options on every vehicle