Car Hire Purchase (HP)
Hire Purchase is one of the simplest ways of buying a new car. Just lay down a deposit you can afford, then pay the rest off over the next 12-60 months.
How Car Hire Purchase works
- You pay a deposit of your choice, then
- Spread the remaining cost over 12-60 months, then
- Once you have finished making payments, the car is yours!
Benefits of Car Hire Purchase
- You decide the deposit. No need to wait while you save up.
- You decide the repayment term.
- Pay it back quickly (lower overall cost due to fewer interest payments), or
- Pay it back slowly (lower monthly cost – but you may pay more in interest)
- Fixed monthly payments. Makes budgeting simple.
- Ownership. At the end of the contract, the car is yours.
Car Hire Purchase (HP) with a balloon payment
You can reduce your monthly payments by deferring some of the balance – making a one-off, lump-sum 'balloon' payment at the end of the car finance agreement.
- Pay a deposit of your choice, and tell us how much you want your balloon payment to be
- Spread the remaining cost over 12-60 months in lower monthly payments, then
- Pay off the remainder – the balloon payment – and you own the car outright.
How your Car Hire Purchase payments are calculated
When you start a Car Hire Purchase plan, we take the following into account when calculating your repayments:
- Cost of the car
- Any deposit you choose to put down
- Duration of your contract hire terms (e.g. 3 or 5 years)
- Interest on the amount borrowed
Car Hire Purchase is a flexible and convenient way of financing a new car – and once your payments have finished, the car is yours.