Hire Purchase
Hire purchasing is a finance plan that allows you to spread the cost of buying your vehicle over a period of time rather than paying for it in one go.
What is Hire purchasing?
Hire purchasing is a finance plan that allows you to spread the cost of buying your vehicle over a period of time rather than paying for it in one go.
When you take out a hire purchase agreement you’ll pay a relatively low deposit, you then hire the vehicle and pay an agreed amount of monthly installments with the option to buy at the end of the contract, with a small ownership fee, so the vehicle is then legally yours.
Benefits of hire purchasing
- Can eventually own the vehicle
- Relatively low deposit
- Can spread the cost over a fixed term
- Will have access to new, higher specifications vehicles
- No mileage restrictions on the vehicle
Things to remember
- The vehicle will cost more overall, due to interest charges
- Missing/late payments can affect your credit score
- Won’t own the vehicle until the final payment is made
