Hire Purchase, or HP, is a good option for those who want to own their car outright. After making an initial deposit, you pay off the entire value of the car plus interest over an agreed period of time – usually between two and five years. These payments typically benefit from a fixed interest rate, and when the contract ends, you are the owner of the car.
Unlike with a PCP plan, there’s no need to estimate your average yearly mileage at the start of the agreement, giving you more freedom if you tend to travel longer distances. Once your finance is paid off, you are also free to keep the car or sell it on as you choose.
Hire Purchase payments are often higher than PCP payments, however, as you are paying off the full value of the vehicle as opposed to a depreciation value. This finance therefore suits customers who have a little more flexibility in their monthly budget.
For further information about our HP packages, or to take out an agreement on one of our used cars, get in touch with our car sales branch today. We’ll be happy to help you find the perfect way to fund your vehicle.