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Hire Purchase Cars

What is Hire Purchase car finance?

If you’re 100% committed to owning the car, HP car finance is perhaps your best option. Unlike the more popular PCP finance, Hire Purchase deals guarantee full ownership of the car when the agreement ends.

Typically, Hire Purchase agreements start with a deposit (or a part-exchange). A term is then agreed for monthly payments, usually lasting between 36-60 months. These monthly payments are fixed by the interest rate set at the beginning of the agreement.

The size of your deposit or part-exchange will affect the amount you pay monthly, with a larger deposit or part-exchange reducing this figure considerably. Also, you’ll pay more interest on longer agreements but your monthly payments will be smaller. The opposite applies to shorter contracts.

Advantages of Hire Purchase

- You will take full ownership of the car once all the payments have been made and the contract has finished

- The rate of interest and monthly payments are fixed in place, allowing you to plan effectively for your finances during the course of the contract

- Hire purchase is a simple way of financing and relatively easy to obtain

Disadvantages of Hire Purchase

- Monthly payments will tend to be higher compared to the likes of PCP and PCH packages, as you are paying for the full sum of the car

- As you will be taking full ownership of the car, you'll need to be aware of the effects of depreciation and your car's value over time

- If your financial situation changes and you can't afford the monthly payments, the car may be repossessed

Finance Disclosure

For the purpose of this promotion Stoneacre is not acting as a lender but as an independent credit broker working with a panel of lenders. A list of these lenders is available upon request. Stoneacre do not charge a fee for an introduction to a finance provider, however, we may or may not receive a commission.

Decidebloom Ltd t/a Stoneacre, Omega Boulevard, Capitol Park, Thorne, DN8 5TX, is authorised and regulated by the Financial Conduct Authority. Our FCA number is 308726. You can verify this by visiting the FCA website or by contacting the FCA on 0800 111 6768.