HP Car Finance To Suit Your Budget

Car Finance

Rates from 10.9% APR. Representative APR 22.45%

 

Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 22.45%, the monthly payment would be £153.29, with a total cost of credit of £2,357.76 and a total amount payable of £7,357.76. Car Loans UK is a broker not a lender. This is an example only, all finance subject to status. Lender fees may apply.

What Is Hire Purchase Finance?

Before getting into HP car finance deals, it is important to know what HP finance is… To keep it short, Hire Purchase (HP), is a type of fine which allows you to purchase a vehicle by paying for it in monthly installments.

These agreements usually range from 1 to 5 years. 

You will also be able to own the car once all payments have been made to the lender, however, you should be aware an option to purchase fee may be required.

Car Finance

Use our finance calculator

Find out how much you could borrow

 

Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 22.45%, the monthly payment would be £153.29, with a total cost of credit of £2,357.76 and a total amount payable of £7,357.76. Car Loans UK is a broker not a lender. This is an example only, all finance subject to status. Lender fees may apply.

How Does Car Finance Work?

Car Finance

The Initial Deposit

This step isn’t always required. Although, placing down a deposit when completing a car finance agreement is highly recommended.

Mercedes Interior

Repayment Plans

Depending on the agreement that has been put in place for example HP, PCP & CS, your repayment plan may vary.

Car Finance

Contract Completion

Upon completion of your contract, you will then have a number of different options available to you. Which we will state below.

Is HP Car Finance The Right Choice For You?

As mentioned previously, HP car finance is one of the simpler forms of car finance. As well as being one of the more popular car finance choices simply due to the simplicity of the finance agreements. Therefore if you are looking for simple, straight forward car finance deals. HP just might be the right finance option for you. 

There are numerous advantages when choosing Hire Purchase for your car finance deal because.

  • Firstly, due to the simplicity of the agreement. It is easy to understand and set your budget accordingly.
  • Secondly, you will be able to afford a more expensive vehicle than you would have with an upfront cash payment.
  • HP car finance deals are easier to secure with a poor credit rating compared to other forms of finance.
  • You will have the option to own the vehicle once the contract is over.
    Low as well as no deposit options available.
  • Extremely good APR for those with good credit scores.
  • CarLoansUK only works with FCA-regulated dealers, therefore you know you’re in safe hands when you choose HP finance through us.

You should however be aware of the few disadvantages of HP car finance deals.

  • The car may be repossessed if you fail to keep up with your repayment plan.
  • Monthly repayments may be higher than other car finance options such as PCP.
  • You do not actually own the car until the final repayment has been made.
  • No modifications can be made to the vehicle without prior permission.

There are numerous other finance options available to our users.

There are a number of other alternative finance options if Hire Purchase doesn’t seem like the right one for you. With Personal Contract Purchase (PCP). Being the most popular option.

The Latest From Car Loans UK

Hp car finance

What Is Hire Purchase Car Finance?

Hire Purchase (HP) car finance is one of the most common forms of car finance. It allows you to buy a vehicle and pay for it over an agreed period, usually on a monthly basis. Once the last payment has been made, you will own the car outright.

Read More »

Dreams On Driveways

Car Loans UK © 2024 All rights reserved

Car Loans UK is a trading style of BMG FG (UK) LTD, a company registered in England and Wales. (Company number: 12382512, Registered Address: 4th Floor, Kingsgate, Wellington Road North, Stockport, Cheshire, SK4 1LW. We act as a credit broker and not a lender and are authorised and regulated by the Financial Conduct Authority for consumer credit FCA no.928674. Car Loans UK can introduce customers to a limited number of finance providers based on overall credit profile and we receive a commission for such introductions, this will not impact the rate you are provided. We do not charge a fee to the customer for arranging the finance. This is a fixed payment or percentage, but can vary by lender. Further information is available on request. Written quotations on request. All finance subject to terms and status Data Protection Registration No.ZA766848.