Hire Purchase Financing

When investing in either a new or used car, it’s always important to ensure you are securing the best value for money possible. Key to getting the best deal for any vehicle is the finance arrangement you take out to fund the purchase. Among the most popular agreements available in the automotive trade is a Hire Purchase contract, which enables you to invest in the model of your choice for an affordable cost.

Car HP FCA

How does Hire Purchase work?

The principles of a Hire Purchase agreement are simple: you are, in essence, hiring the vehicle for an agreed period of time, with the option to purchase at the end. What this means is that the financing company is the de facto owner of your vehicle throughout the entirety of the arrangement; transfer of ownership to you only occurs at the end of the term and once you have also paid the ‘option to purchase’ fee. This does, however, mean that should you be unable to pay for the car, the financing company has the right to repossess the vehicle.

In order to make purchasing a new or used car as affordable as possible, Hire Purchase agreements are often flexible in the duration of the contract and the level of deposit you pay. So, should you wish to pay a deposit of 20% over the course of four years, you can look forward to lower monthly repayments. You may also find special offers that provide a deposit contribution to the vehicle of your choice, meaning the monthly repayments are lowered even further.

At the end of the agreement, you will be presented with the option to pay the ‘option to purchase’ fee, thereby enabling you to take full ownership. Since this is usually a payment of only a few hundred pounds, and the balance of the vehicle’s value has already been paid off, it makes sense to pay this sum.

What are the benefits of Hire Purchase?

  • Spread the cost of your new or used car over an agreed period of time
  • Own the vehicle outright at the end of the agreement, subject to paying the ‘option to purchase’ fee
  • Choose your deposit to reduce the monthly repayments
  • Flexible contract agreements ranging from one to five years
  • Low rates of APR - sometimes 0% - are often available
  • More chance of acceptance by lenders due to the vehicle being used as collateral

Why finance with The Car Sales Company?

Here at The Car Sales Company, we’re able to help you source the very best Hire Purchase agreements and the most competitive rates of APR to ensure that you’re able to drive away in the vehicle of your choice for less. All finance applications will be completed online and take just a few minutes to complete, meaning you will be able to learn whether you’re accepted or not in next to no time. Helping you find the ideal purchasing solution will be an experienced member of The Car Sales Company’s team. With many years’ experience in supporting motorists in Bury and the surrounding areas, we are confident of being able to help you find the ideal vehicle at the best possible price. Take a look through the listings today and get in touch with our dealership to discuss your purchasing options. We’ll be delighted to answer any questions you may have and help get you on the road today.