Representative example: borrowing £7,000 over 5 years with a representative APR of 21.9%, the annual interest rate of 21.9% (Fixed) and a deposit of £0.00, the monthly would be £178.52, with a total cost of credit of £3711.20 and a total amount payable of £10,711.20. Rates may differ as they are dependent on individual circumstances'. Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status. Quick Car Finance are a broker not a lender.
What are the benefits of hire purchase?
- Get the car you want
- Eventually own the car
- Set your payments
- No milage restrictions
5 Stars Excellent
What is hire purchase?
A hire purchase finance agreement works by providing a loan amount that equals the total value of your new used car or vehicle, minus the amount of the initial deposit. You pay back HP finance thorugh monthly repayment at a fixed interest rate, based on your own personal circumstances, over a pre-agreed term of 1 - 5 years
Is hire purchase right for me?
You may want to consider a HP agreement if:
- OwnershipYou want to keep your car at the end of the finance agreement
- No RestrictionsYou don't want to be bound by mileage restrictions
- ControlYou'd prefer to spread the full cost of a car evenly without final fee
Hire purchase allows me to
- Get the car Finally have the car or vehicle you may not have been able to buy outright.
- Own the car Once all monthly payments have been made.
- Set payment Have set payment amounts, suited to me, over an agreed time span.
- Mileage Restrictions No need to worry about mile restrictions.
Advantages of hire purchase
Disadvantages of hire purchase
Why choose quick car finance
- 48 Different Deals
- We compare over 48 different car finance deals to help you find the most competitive rates for your dream car.
- Fair & competitive
- We work with number of leading car finance providers and have cross checked dealers across the country to ensure their prices are fair, competitive and transparent.
- Free to use
- Our entire application process is free to use and will provide you with a list of competitive rates and quotes
- Quick Turnaround
- Once approved and all final checks have been made, we will transfer your funds to the dealer and you can be on the road with your new car within 24 to 48 hours.
Take it directly from the people who know!
Quick car finance have been absolutely brilliant.. I've dealt with a few finance companies in the last month.. A lot have dragged there feet and not naged to get me what I want.. Quick car finance have done exactly what they said they would do... Got me quick car finance.. Thankyou
5 Stars Excellent Over 2500, genuine, 5 star reviews
Did you know?
There are few things you can do make sure your monthly payments are suitable for you!
- The bigger your deposit, the less you're likely to pay each month.
- Spreading the cost over a longer period of time will result in smaller monthly repayments. (But with some lenders you may end up paying more interest)
- Having a good credit score. Your deal will be based partly on your credit history.
Hire Purchase Car Finance FAQs
- What is hire purchase car finance?
Hire purchase (HP) car finance is a type of financing arrangement that allows individuals to purchase a vehicle without paying for it in full upfront. With hire purchase, you pay an initial deposit (usually around 10-20% of the car's value) and then make regular monthly payments over a fixed term, typically ranging from 1 to 5 years. Once all payments, including any optional final payment (balloon payment), are made, ownership of the vehicle is transferred to you.
During the hire purchase agreement, you are effectively hiring the vehicle from the finance company, and they remain the legal owner until the final payment is made.
This type of financing is widely used for purchasing vehicles, especially in the UK.
- What is the difference between car finance and hire purchase?
Car finance is a broad term that encompasses various methods of financing a vehicle purchase. It includes options like hire purchase, personal contract purchase (PCP), personal loans, and other forms of lending or leasing arrangements.
Hire purchase, on the other hand, is a specific type of car finance arrangement. It operates under the principle of hire, where you make monthly payments to rent the vehicle until the total cost, including any final payment, is covered. Once all payments are made, ownership is transferred to you.
The key difference is that with hire purchase, ownership of the vehicle is the ultimate goal, while other forms of car finance, like PCP, may provide the option to return the vehicle or trade it in for a new one at the end of the agreement.
- What are the disadvantages of hire purchase?
While hire purchase can be a convenient way to acquire a vehicle, it's important to be aware of its potential disadvantages.
Higher Overall Cost: Hire purchase can be more expensive in the long run due to the interest payments, especially if the APR (Annual Percentage Rate) is high.
Ownership Delayed: You don't own the vehicle until all payments, including any final balloon payment, are made. This means you can't sell or modify the car until the agreement is completed. Potential Repossession: If you miss payments, the finance company has the right to repossess the vehicle.
Depreciation Risk: You bear the risk of the vehicle's depreciation, as you're responsible for its maintenance and any decrease in value during the agreement.
- What are the benefits of hire purchase car finance?
Hire purchase also offers several advantages. Spread Costs. It allows you to spread the cost of the vehicle over a fixed term, making it more affordable in the short term.
Fixed Interest Rates: The interest rates are usually fixed for the duration of the agreement, providing predictability in your monthly payments.
Ownership at the End: Once all payments are made, you become the legal owner of the vehicle.
No Mileage Restrictions: Unlike some other forms of car finance, hire purchase typically doesn't come with mileage restrictions.
Flexible Deposit: You can often choose the initial deposit amount, allowing you to customize the agreement to suit your budget.
It's important to carefully consider your financial situation and preferences before choosing any form of car finance, including hire purchase, to ensure it aligns with your needs and goals."
Hire purchase checklist
- Personal details; full name, date of birth, address history
- Employment history and details
- Identification documents i.e driver lincense, proof of address and proof of income