What if I can’t afford my car finance HP repayments?

If you are unable to make your HP finance payments, you should contact your lender straight away and try and work out a deal. If you can't take action, your car may be repossessed. As a result, your credit score will suffer.

Can I end HP car finance early?

At the end of your Hire Purchase agreement, you become the legal owner of the vehicle. To terminate the contract early, you must have paid at least 50% of the total amount payable. This can be achieved through your regular monthly payments or by making additional contributions to reach the halfway point of your finance agreement.

Can I refinance my car on a Hire Purchase finance agreement?

You are able to swap Hire Purchase car agreements to a cheaper finance by buying a less expensive car. However, you must pay the remaining balance on your current vehicle, plus any monthly payments on your new finance deal. This option is not for everyone, but the unfortunate alternative is to have your car repossessed.

Car HP Finance Legal Protection and Rights

Under a Hire Purchase agreement, the finance provider retains legal ownership of the vehicle until you complete all payments. This means you cannot sell the car without obtaining prior permission from the finance company. Should you miss payments, the provider reserves the right to repossess the vehicle.However, you are protected by the Consumer Rights Act 2015, which safeguards your interests. If your vehicle develops a fault, you can reject it within the first 30 days or request repairs and replacements within six months of purchase.

What’s the difference between Hire Purchase and Personal Contract Purchase?

Car Hire Purchase deals are ideal if you want to own your vehicle outright. However, Personal Contract Purchase can offer you the flexibility to buy, return, or part-exchange your car at the end of your contract.

What's the difference between Hire Purchase vs Leasing?

With cars on HP finance, the intent is to buy, and higher monthly payments reflect this.Whereas leasing a car is effectively paying to use the vehicle. You're simply hiring a car and handing it back to the dealer. It can be cheaper if you have a decent deposit, and is a good entry point to driving a new car.Buying HP finance cars, are more expensive on a monthly basis, but you own the vehicle at the end of your agreement.

How do I get the best Hire Purchase deals?

You can do a few things to ensure you get the best HP car finance deals available:Firstly, you can check your credit score. If it is lower than expected, try and raise it by fixing the problems on your credit report. Find out more information on how to improve your credit score.Additionally, you can place a larger deposit, as this makes the monthly payments easier to manage.

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What is a Hire Purchase agreement?

Hire Purchase (HP) is a type of credit agreement for car finance which may suit you when you're buying a new or used vehicle.

If you want to own the vehicle at the end of the agreement, HP finance would be a suitable option.

You essentially hire the car with a small deposit, paying a monthly payment and having the opportunity to buy it at the end of the contract.

You can check if you are eligible for Hire Purchase car finance today, we even offer an online Hire Purchase calculator to help work out your monthly payments.

Check Your Eligibility

Representative example: £19,121.93 repayable over 48 months. 48 monthly payments of £323.72. Deposit of £1,266.23. Amount of credit £17,855.70. Representative 11.36% APR. Fixed rate per annum 6.46%. Final Payment £8,511.57. Option to purchase fee £399.00. Cost of Credit £6,194.43. Total amount payable (Incl. Deposit, charge for credit, final payment & purchase fee) is £25,715.36.

What is a Hire Purchase agreement?

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