Spread the costs of your new car in monthly instalments over one to five years and take full ownership at the end of the term.
Hire Purchase spreads the cost of buying your new car over a fixed period of 12 to 60 months (one to five years), at the end of the term you have the option to pay the 'Option to Purchase' fee to take ownership of the car. Until you take ownership of the vehicle the finance company officially owns the car but as the registered keeper of the car you are responsible for insuring and maintaining it.
Hire Purchase holds lower risk for the finance company as the lender is secured against the car. This means HP is sometimes available to individuals who have been turned down a regular loan.
Hire Purchase is ideal for individuals who want to own the vehicle but would rather spread the costs over a few years instead of paying the full costs outright.
To be eligible for Hire Purchase on a vehicle you must be at least 18 years of age with a full UK driving licences. A decent credit rating is also required for all finance agreements.
At the end of the Hire Purchase agreement have the option to pay the final 'Option to purchase' fee and transfer the ownership of the vehicle to yourself. Alternatively you hand the vehicle back to the leasing provider with no further obligations on the vehicle. If you have exceeded the agreed annual mileage you will be liable to pay for each mile over the agreed total. The condition of the vehicle will be assessed according to the BVRLA (British Vehicle Rental and Leasing Association) Fair Wear and Tear guidelines. Any damage outside the BVRLA guides may be subject to end-of-lease penalty charges.
Contact one of our Chorley Group dealerships today to learn more about Hire Purchase and other finance options available.