Hire Purchase (HP)

Car finance option Hire Purchase (HP) is a type of car finance agreement where you can borrow a set amount of money over an agreed period at a fixed interest rate. The amount borrowed and the total interest is divided across the entire agreement, meaning you pay the same amount each month. You can also pay off the total early.

"The fixed monthly payments suited me perfectly."

“When choosing a car finance deal, I wanted to know what I would be paying each month so I could set my budget. The Hire Purchase car finance option suited me perfectly as the total interest was included in the monthly payments from the start of the agreement, meaning I could divide the cost equally across the whole agreement. This gave me peace of mind from the start.”

- Emma from Tunbridge Wells

Hire Purchase: Key Features

  • Fixed monthly payments
  • Fixed interest rate means interest doesn’t fluctuate
  • Interest accrued over the finance period divided between all payments
  • Option to pay off the agreement early
  • No annual mileage limits
  • Option to purchase fee at the end of the agreement.

Not sure if HP is the finance option for you?

We discuss HP in more detail over at our car finance glossary page and include common question and answers on this car finance option, please visit:
Hire Purchase explained

Speak to one of our Customer Advisors who will be happy to discuss your car finance options with you. Call 0800 1777 290 or apply online for car finance today.

Alternatively, if you'd like to learn more about the other loan options available, please visit our interactive Car Finance Options tool.