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 FinanceHow Hire Purchase Works
A simple step-by-step guide to HP finance
Choose Your Car
Select the vehicle you want to purchase
Pay Deposit
Make an initial payment (typically 10-50%)
Monthly Payments
Pay fixed amounts over 24-60 months
You Own It
Car is yours with no further payments
Pros and Cons
- 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)
- 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
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."
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."
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
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