SEE HOW HIRE PURCHASE FINANCE CAN WORK FOR YOU
What is a Hire Purchase agreement?
Hire Purchase (HP) is a type of credit agreement for car finance which may suit you when you're buying a new or used vehicle.
If you want to own the vehicle at the end of the agreement, HP finance would be a suitable option.
You essentially hire the car with a small deposit, paying a monthly payment and having the opportunity to buy it at the end of the contract.
You can check if you are eligible for Hire Purchase car finance today, we even offer an online Hire Purchase calculator to help work out your monthly payments.
Representative Example
This represents an average of the deals that our customers receive on other vehicles
We are a credit broker and a lender. We can introduce you to a limited number of lenders and their finance products. We will provide details of products available, but no advice or recommendation will be made. You must decide whether the finance product is right for you. We do not charge you a fee for our services. Lenders will pay commission to us (either a fixed fee or a fixed percentage of the amount you borrow) for introducing you to them, this may be calculated in reference to a variable factor such as (but not limited to) the vehicle age, your credit score and the amount you are borrowing. Different lenders may pay different commissions for such introductions. Offers available to everyone over the age of 18, subject to credit approval.
How does HP car finance work?
Hire Purchase car finance is fairly straightforward and enables you to have fixed payment amounts.
You can pay a deposit (or part exchange), then agree on a term for monthly instalments.
You have a fixed interest rate set at the start of your Hire Purchase finance contract.
All monthly costs will be the same. However, your final payment will work out a little bit more.
The higher a deposit you put down the less your monthly payments will be. A longer term will bring payments down (albeit with more interest payable), while a shorter term will make payments more expensive.
At the end of your Hire Purchase car agreement, you are guaranteed full ownership.
Here is a working example of a Hire Purchase car deal:
Hire Purchase Car Finance – Is it right for you?
HP finance is the best option if you’re 100% committed to owning your car. Buying a car on Hire Purchase means you can spread the cost into manageable monthly payments.
At Stoneacre, we work with a panel of lenders to provide car finance for everyone. Our Hire Purchase deals can be adjusted to suit your budget, term, and deposit.
If you're in need of more flexibility and lower monthly payments, then take a look at PCP finance, which might suit you better.
Don't worry if you are concerned that you may not be accepted for car finance. Even if you don’t have a strong credit rating, we can help. Our online eligibility form only performs a 'soft search', so it won't affect your credit rating regardless of the decision.
Step-by-Step Guide to HP Car Finance
We make car Hire Purchase finance easy with the help of our dedicated in-house team. Just follow these simple steps.
1. Find the Right Car
Hire Purchase agreements are available for both used and new cars. Try our Hire Purchase Calculator to help work out the monthly payments.
2. Check Your Eligibility
You can check your eligibility for Hire Purchase finance by filling out our online form. Since it's merely a soft search, your credit rating won't be impacted by the outcome.
3. Get Pre-Approved
Get pre-approved for Hire Purchase car finance with our assistance. A member of our finance team will be in touch to walk you through the remaining steps of your application.
4. Dealer Appointment
Our team will assist you in selecting your ideal car and schedule an appointment with you at one of our dealerships to complete your finance and ensure you get the best Hire Purchase car deal.
Stoneacre's HP Finance Calculator
Our interactive car finance calculator helps you understand potential monthly costs by considering key factors like vehicle price, deposit, and payment term. With fixed monthly payments, you can confidently budget for your new car.
Key considerations include:
- Affordability - Ensure monthly payments fit comfortably within your budget
- Credit Rating - Impacts interest rates; better credit means lower costs
- Deposit - Larger upfront payments reduce overall financing needs
- Payment Term - Choose between 12-60 months, balancing monthly payments and total interest
The calculator provides transparent insights into potential monthly payments, best available interest rates, total cost of credit, and overall amount payable, giving you a comprehensive view of your financial commitment.
Hire Purchase Advantages and Disadvantages
What is the difference between Hire Purchase and Conditional Sale finance?
Hire Purchase (HP) and Conditional Sale (CS) finance are very similar, however the difference occurs at the end of the agreement.
After making your last payment on CS finance, you automatically become the vehicle's legal owner.
Whereas, at the end of an HP finance arrangement, you will have to pay the nominal "option to purchase fee" in order to acquire the vehicle.
You won't have to worry about being stung with hidden expenses because you will be informed of your "option to purchase" price at the beginning of your Hire Purchase agreement.
Understanding Credit Scores for Hire Purchase Car Finance
Your credit score is a critical factor in HP car finance applications, directly influencing both approval chances and interest rates. While no universal minimum score exists, a higher credit rating significantly improves your financing opportunities.
Low credit scores typically result from poor financial behaviors. To improve your credit, focus on timely bill payments, maintaining older accounts, monitoring your credit report, and strategically managing existing debts.
During a Hire Purchase application, lenders perform credit checks to assess risk. Importantly, different lenders use various credit reference agencies, meaning a rejection from one doesn't guarantee rejection from all. At Stoneacre, you can check your Hire Purchase finance eligibility online without impacting your credit score.
What to ask when buying a car on Hire Purchase
You can be sure you are purchasing from a reputable dealer if you are looking for Hire Purchase cars with Stoneacre.
However, to ensure you are aware of all the pros and cons of your car finance HP agreement, it's a good idea to get a full understanding of the contract.
