What is Hire Purchase?
Hire Purchase
Hire purchase is a simple, straightforward way to spread the cost of buying a new car. It's fixed rate finance - with a fixed monthly payment.
The deposit you pay is flexible - typically between 0-50% of the vehicle cost. The remaining balance, plus fixed interest, is repaid in equal instalments over an agreed period (12-60 months).
Why consider Hire Purchase?
- Low deposit - keeps valuable personal or business cash available
- Control - you decide the deposit, you decide the term
- Fixed monthly payment - perfect for budgeting
- Flexibility - doesn't compromise your other lines of credit
- Assets - you gain vehicle ownership
- Tax benefits - Tax allowances for business users
- VAT free - no VAT on payments