Hire Purchase Finance?

At Wavertree Car Centre, we offer two main types of car finance: Personal Contract Purchase (PCP) and Hire Purchase (HP). To determine whether HP finance is right for you, you should weigh up the benefits and limitations and consider how it will suit your personal situation and preferences.

HP finance is a popular method of paying for a car, as it allows buyers to divide the cost into more manageable monthly instalments.

With HP finance, you will put down an initial deposit, and then pay the remaining value of your car in monthly instalments. Once all of your payments have been made, and the cost of the car has been covered, the vehicle will officially belong to you.

HP Finance Pros

1. You can start driving your car straight away, rather than waiting until you have saved up enough cash.
2. With HP finance, you may be able to afford a car that you wouldn’t have been able to if you bought it outright.
3. There are no mileage caps like there would be with PCP agreements.
4. You will not have to make a large final payment at the end of your agreement to keep the car like you would with a PCP deal. Once all of the repayments have been made, you will have full legal ownership of the vehicle.

HP Finance Cons

1. Monthly payments will be higher than they would with a PCP agreement, because you will be keeping the vehicle for a certainty after the contract term is over.
2. The car will not officially belong to you until you have made all of your repayments.
3. You will not be able to sell the car until you have settled the finance.

Generally, hire purchase is a great option, as long as you are certain that you will be able to make the monthly repayments. Apply for a free HP finance quote with Wavertree Car Centre today!