Hire Purchase (HP)
- What is Hire Purchase?
First off we have Hire Purchase (HP) – a finance product that has been around, it seems, since the dawn of time. It’s used everywhere in nearly all retail environments and is very simple to understand.
You pay a deposit and make your monthly payment until the car becomes yours, 100%. It’s best for customers who definitely want to own the car at the end of the agreement.
Advantages of HP
- The cost of vehicle purchase is spread over a fixed period, normally between 1 and 5 years, rather than a large upfront payment
- You own the vehicle once the final installment has been made
Disadvantages of HP
- Potentially higher monthly payments in comparison to other finance options.