What’s Hire Purchase?
Hire Purchase is a type of car finance that helps you buy a car without needing to save up a large sum.
You can pay an optional deposit with a dealer, then spread the remaining cost of the car over an agreed-upon period – between 1 - 7 years. At the end of that time, you’ll own the vehicle outright (after paying an Option to Purchase (OTP) fee of £1).
We’ll never charge you for mileage fees and, unlike other car finance options, there’s no large balloon payment.
Why choose us?
We only use verified dealerships
We'll quality check and approve each dealer.
No hidden charges
You’ll never pay mileage fees or final balloon payments.
From a brand you know and trust
Get the easy service we’re known for. We’ll even contact and pay the car dealer for you.
How does Hire Purchase work?
So, how do we make buying a car straightforward?
Get a quoteGet an instant quote that won’t impact your credit score. |
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Add your carCompare five different models and prices. |
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Apply for financeOnce you’re happy with your quote and car, submit your application. |
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Arrange collectionOur agents will be in touch with you to arrange pickup. |
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Let us know if you need anythingCustomers highly rate us on TrustPilot for a reason. |
Representative example
The rate we offer depends on individual circumstances. The interest rate will vary too depending on your financial circumstances and the amount of loan you want. All loans are subject to status.
Borrowing £15000 over 60 months with 59 monthly repayments of £314.86 and a final monthly payment of £315.86 which includes the £1 Option to Purchase Fee. The total amount repayable will be £18892.60. Representative 9.9% APR, annual interest rate (fixed) 9.48%.
What your Hire Purchase agreement will look like
Is it right for me?
Hire Purchase has pros and cons, and it’s not for everyone.
Pros of Hire Purchase
- you can choose not to pay a deposit
- there are no excess mileage fees
- you can make extra payments at any time without paying a fee
- spread the cost over fixed monthly payments
Cons of Hire Purchase
- missing payments can impact your credit score
- your car could be repossessed if you don't make your payments
- you won't own the vehicle right away
Don't worry if hire purchase isn't for you. PCP or an unsecured car loan may suit you better.
What do I need to complete my application?
We'll just need to check your personal details are accurate.
We’ll ask for:
- bank details
- car details
- contact details
In some instances, we may ask for more information from you to support your application. We could ask for:
- proof of identity - this might be a photo or scan of your driving license or passport
- proof of income - via bank account verification or payslips/bank statements