Hire Purchase - HP *
Hire purchase is one of the most common forms of vehicle purchase commonly known as HP. You can specify any deposit of your choice and borrow the balance usually over 12-48 months. Once you have paid your last payment the car is yours.
Hire Purchase is not linked to the residual value or the amount of miles you do annually, therefore if you do allot of miles and don’t want to worry about the condition of your car this may be a good option for you.
The main advantage of Hire Purchase is that it is generally easier to obtain HP than a traditional loan as the loan is secured against the car however if you don’t keep up your payment the lender will have the right to repossess the vehicle.
The other main advantage is that you are not putting your house at risk if you can’t meet repayments.
As HP will generally be more expensive than a personal loan so it is important to know the APR in order to know if you are getting a good or bad deal.
How to get the best deal on HP?
STEP 1 : Get a free credit report - Click here to get a Free Credit Report
Once you know you credit score is satisfactory you will be in the strongest position in obtaining any kind of loan.
STEP 2 : Get dealers to compete to win your order
Once you know you have a satisfactory credit score you can simply place your order for your desired car.
To do this simply select the car you require from our website (select "Cash Buyers" arrow in Step 2) . When you get to (Step 3) you can set your finance condition as "Require HP over months with a £? deposit". You do this by simply spefifying the following in the “other comments box at the bottom of step 3”:
- Loan type (HP)
- Loan period (12-48 Months)
- The deposit amount you wish to put down as deposit (£)
If you have already been offered a deal you wish suppliers to beat, in addition to the above also specify:
- The monthly payment offered
- Who the offer was from
- The APR offered
What ever monthly payment you state will need to be beaten by a minimum of £500 over the loan term with all the other conditions being maintained.
*Finance is provided, subject to status, by our finance partners. We would recommend you confirm your finance eligibility prior to placing an order Click here to get a Free Credit Report. Our fee is based on the vehicle RRP and is included in the Max Price indicated, you can view fee information here. For PCP - Personal Contract Plan, Lease or Hire Purchase agreements our fee is pre authorised prior to running the auction, if you achieve all your vehicle purchase conditions. If you place an order with us for finance and you are rejected on finance our fee will not be refundable. The fee will be charged (authorised) once you have selected to go ahead with a winning offer and the offer has been re confirmed.
For PCP, Lease or Hire Purchase agreements, if you exceed the agreed contract mileage, there will be an excess mileage charge which will not exceed 23p per mile. In addition, you will be liable to pay for any accidental damage to the vehicle or excess wear and tear, with regard to its age and mileage. While free delivery is included to all UK main land locations on all vehicles. Due to FCA regulations you will have to sign the finance documentation on licensed premises (usually the location of the supplying dealer).