Hire Purchase (HP)

Keywords

Hire Purchase
HP

How does buying a car using hire purchase work?

Hire purchase is one of the many ways to finance a new or used car. The usual method is to pay a deposit and then pay off the rest of the cost of the car in monthly instalments. The total loan is secured against the car, so you don’t actually own the vehicle until the last payment is made.

Related Jargon

How does a PCP (Personal Contract Purchase) work when buying a car?

Personal Contract Purchase (PCP) is a way of financing the purchase of a car, with repayments covering the amount of money that the vehicle is expected to lose over the length of the agreement (usually three years).

How does buying a car using hire purchase work?

Hire purchase is a way of financing a new or used car and usually involves you putting down a deposit and then paying off the rest of the cost of the car in monthly instalments.