If you want to own the car at the end of your finance agreement, as opposed to upgrading or returning it to the lender then hire purchase is likely to be the best option for you. Additionally, if you’re regularly driving long distances and you don’t want to worry about sticking to a mileage limit, you should definitely consider a hire purchase loan. Hire purchase loans are also more widely available to those with poor or bad credit, whereas PCP loans are generally only offered to those with a good or excellent credit profile.

Yes. Although lenders are often willing to lend to those with bad credit, a low credit score means you will be considered a greater risk to lend to than someone with a perfect credit score. As a result, you’ll be charged more interest by the lender to ensure they get all their money back.

At Creditplus we aim to provide a suitable finance package for everyone. If you’re not sure whether hire purchase is the best option for you, we offer alternative finance packages including hire purchase, lease purchase and car leasing agreements, all of which can be specifically tailored to suit your individual needs.