What is Hire Purchase Car Finance?
HP (Hire Purchase) is just one of the types of car finance agreement that we offer at Wavertree Car Centre.
HP finance agreements allow you to pay for a car in monthly instalments rather than all at once and after you have made all of the payments, the car will officially be yours.
How Does HP Finance Work?
After selecting the car that you wish to buy, you will put down an initial deposit and the length of the contract term will be agreed. To work out how much you will pay in each instalment, the amount you are borrowing (the vehicle’s price minus your deposit) will be divided by the number of months in your contract term.
Our relationships with numerous leading finance providers allows us to offer flexible finance packages at Wavertree Car Centre, so we can help you find the best option to suit your budget no matter what your credit rating.
What Happens at the End of a HP Agreement?
Once your contract period has come to an end, you will make one final payment, known as an ‘option to purchase fee’ and this will transfer legal ownership of the vehicle from the finance lender to you.
Is HP finance Right for Me?
Hire purchase finance is a popular method of paying for a used car, because it allows you to drive away in a car without having to save up for a long period or having to part with all of your cash at once. It is a straightforward type of car finance and, unlike PCP and leasing agreements, it will not involve mileage restrictions. However, you must be certain that you will be able keep up with the regular repayments.
For more advice about HP, speak to one of our car finance experts at Wavertree Car Centre in Liverpool or apply online for a free quote!