Hire Purchase

Hire purchase is the simple established method of purchasing a vehicle.

You pay an initial deposit, the balance by fixed, and equal monthly payments.

The agreement can be from 1 to 5 years on length and when all the payments have been made, you become the owner of the vehicle.

Hire purchase plan can be a simple cost effective method of borrowing.

At any point during the agreement you can change your vehicle. A settlement figure is agreed, saving some of the interest charges.

You can exchange your car at any time but beware of the settlement figure if you are ending the contract and not taking out a new HP contract. In these circumstances the finance company will usually add to the settlement figure the interest they would have gained if the contract had gone the full term.