Hire purchase is the ideal solution if you want to spread the cost of purchasing a vehicle, across affordable monthly repayments. You choose how much you want to borrow over an agreed period, the cost and interest are evenly divided into fixed monthly instalments, and at the end of your agreement, the car is yours. You also have the option to pay off the total amount early if your circumstances change.
- Widely available to a range of credit backgrounds
- Easy budgeting with fixed interest rates
- Enjoy the freedom of no mileage limits
- The car is yours at the end of the agreement
You want to purchase a Nissan Qashqai valued at £12,800, so you opt for a 48-month hire purchase agreement with an APR of 10.9%.
You have a £500 deposit, so the amount of credit required is £12,300. The interest, combined with the amount borrowed, is divided into 48 monthly payments of £314.27, bringing the total amount payable to £15,698. When the final payment has been made and any outstanding fees from the lender have been settled, the car is yours.
Find out how much you can borrow using our hire purchase calculator.
- Terms and conditions apply. Subject to status, application and credit acceptance.
- Subject to excess mileage and return conditions.
Representative example: borrowing £7,500 over 48 months with a representative APR of 18.9%, an annual interest rate of 18.9% (Fixed) and a deposit of £0.00, the amount payable would be £223.86 per calendar month, with a total cost of credit of £3,245.06 and a total amount payable of £10,745.06.
Provided you’re aged between 18-75 and have a full UK driver licence you will likely be eligible for hire purchase. You can check your eligibility here and receive a decision within a matter of minutes, without affecting your credit score. Got a question about eligibility? For further advice, visit our eligibility FAQs.
If owning the car at the end of the agreement is important to you, hire purchase could be your best option. Spreading the cost evenly across your contract makes for easy budgeting, and unlike PCP, there is no balloon payment looming on the horizon, should you decide to keep the car. And if you’re regularly driving long distances you’ll no doubt appreciate the freedom and peace of mind that comes with no-mileage limits.
Yes, typically hire purchase has the highest approval rate of all car finance options and is often available to people with a less favourable credit history. And because Creditplus work with several lenders who specialise in bad credit car finance, we can help you get the best possible deal, even if you have been refused car finance elsewhere. Want to check your eligibility without affecting your credit score? Our eligibility checker only takes a few minutes, and you’ll receive an instant decision. Alternatively, you can find more details on bad credit car finance here.
In most cases, lenders will look more favourably on people with a higher credit score. If that’s you - good news! A strong credit profile will normally result in lower interest rates, helping to reduce the overall cost of your loan. And if you haven’t got a perfect score, you can easily turn things around with a little work. To access the best possible rates, try our complete guide for top tips to help you improve your credit score, and maintain it.
Hire purchase is a type of conditional sale agreement, whereby the entire cost of the vehicle is divided into equal monthly repayments over the length of your contract. At the end of the agreement, you own the vehicle. With car leasing, you’re essentially renting a vehicle over an agreed period, based on an agreed mileage, meaning your monthly instalments are normally lower in comparison. At the end of a leasing agreement you return the car to the lender.
Monthly payments are typically higher with a hire purchase agreement, simply because you’re making repayments to own the vehicle at the end of the contract. And unlike a lease agreement, you don’t have the option of returning the car to the lender at the end of your contract. This may be a disadvantage if you’re the type of person who likes to regularly upgrade your car – and you don’t want to face the hassle of selling the car yourself.
Absolutely! Whether you’re looking for a commercial van; a van for personal use; or even a campervan or motorhome, Creditplus can provide a hire purchase solution to suit your requirements. Get a quote today using our simple, no-obligation application form.
Want To Know More?
For more loan options head over to our Personal Contract Purchase, Lease Purchase or Personal Contract Hire pages.
Check My Eligibilityor call us on 0333 6000 290
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This is the second time I’ve used Creditplus to buy a car, and to be honest, I wouldn’t really do it any other way.
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At a Glance
Hire purchase is the ideal solution if you want to spread the cost of purchasing a vehicle, across affordable monthly repayments. You choose how much you want to borrow over an agreed period, the cost and interest are evenly divided into fixed monthly instalments, and at the end of your agreement, the car is yours. You also have the option to pay off the total amount early if your circumstances change.
Advantages of Hire Purchase
- Widely available to a range of credit backgrounds
- Easy budgeting with fixed interest rates
- Enjoy the freedom of no mileage limits
- The car is yours at the end of the agreement
Example
You want to purchase a Nissan Qashqai valued at £12,800, so you opt for a 48-month hire purchase agreement with an APR of 10.9%.
You have a £500 deposit, so the amount of credit required is £12,300. The interest, combined with the amount borrowed, is divided into 48 monthly payments of £314.27, bringing the total amount payable to £15,698. When the final payment has been made and any outstanding fees from the lender have been settled, the car is yours.
Find out how much you can borrow using our hire purchase calculator.
- Terms and conditions apply. Subject to status, application and credit acceptance.
- Subject to excess mileage and return conditions.
Representative example: borrowing £7,500 over 48 months with a representative APR of 18.9%, an annual interest rate of 18.9% (Fixed) and a deposit of £0.00, the amount payable would be £223.86 per calendar month, with a total cost of credit of £3,245.06 and a total amount payable of £10,745.06.
Hire Purchase FAQs
Provided you’re aged between 18-75 and have a full UK driver licence you will likely be eligible for hire purchase. You can check your eligibility here and receive a decision within a matter of minutes, without affecting your credit score. Got a question about eligibility? For further advice, visit our eligibility FAQs.
If owning the car at the end of the agreement is important to you, hire purchase could be your best option. Spreading the cost evenly across your contract makes for easy budgeting, and unlike PCP, there is no balloon payment looming on the horizon, should you decide to keep the car. And if you’re regularly driving long distances you’ll no doubt appreciate the freedom and peace of mind that comes with no-mileage limits.
Yes, typically hire purchase has the highest approval rate of all car finance options and is often available to people with a less favourable credit history. And because Creditplus work with several lenders who specialise in bad credit car finance, we can help you get the best possible deal, even if you have been refused car finance elsewhere. Want to check your eligibility without affecting your credit score? Our eligibility checker only takes a few minutes, and you’ll receive an instant decision. Alternatively, you can find more details on bad credit car finance here.
In most cases, lenders will look more favourably on people with a higher credit score. If that’s you - good news! A strong credit profile will normally result in lower interest rates, helping to reduce the overall cost of your loan. And if you haven’t got a perfect score, you can easily turn things around with a little work. To access the best possible rates, try our complete guide for top tips to help you improve your credit score, and maintain it.
Hire purchase is a type of conditional sale agreement, whereby the entire cost of the vehicle is divided into equal monthly repayments over the length of your contract. At the end of the agreement, you own the vehicle. With car leasing, you’re essentially renting a vehicle over an agreed period, based on an agreed mileage, meaning your monthly instalments are normally lower in comparison. At the end of a leasing agreement you return the car to the lender.
Monthly payments are typically higher with a hire purchase agreement, simply because you’re making repayments to own the vehicle at the end of the contract. And unlike a lease agreement, you don’t have the option of returning the car to the lender at the end of your contract. This may be a disadvantage if you’re the type of person who likes to regularly upgrade your car – and you don’t want to face the hassle of selling the car yourself.
Absolutely! Whether you’re looking for a commercial van; a van for personal use; or even a campervan or motorhome, Creditplus can provide a hire purchase solution to suit your requirements. Get a quote today using our simple, no-obligation application form.
Want To Know More?
For more loan options head over to our Personal Contract Purchase, Lease Purchase or Personal Contract Hire pages.
Check My EligibilityOur Customers Love Us!
This is the second time I’ve used Creditplus to buy a car, and to be honest, I wouldn’t really do it any other way.
