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Hire Purchase (HP) Finance

Find out whether Hire Purchase (HP) finance is right for you

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What's hire purchase (HP)?

Hire Purchase (HP) is a flexible finance option designed to help you purchase a car via monthly instalments. Once you’ve paid your final instalment, you’ll own the car.

When you enter into a HP agreement, you'll pay an initial deposit for the car followed by monthly payments over a number of months (usually between 12 and 60) agreed by you and one of our trusted lenders.

It's worth noting that the size of the deposit you put towards the deal will impact the amount you pay back each month; the greater the deposit, the lower the monthly repayments.

You won’t own the car until you pay your final monthly instalment and an Option to Purchase Fee of £10. This fee covers the cost of transferring the ownership from the finance company to you. After that, the car is all yours.

Hire purchase pros and cons

Hire Purchase Pros

Hire Purchase Cons

You're paying towards owning the
car at the end of your agreement

You’re paying for the total cost of
the car over the agreement term

You don’t have to worry about annual mileage
restrictions or wear and tear on the car

You'll only own the car once you
have paid the final agreed instalment

You can contribute a higher deposit
to reduce the monthly repayments

You're likely to pay more back
each month than on a PCP plan


HP is a great option if you're looking to purchase a car you wouldn't otherwise be able to in an up-front, one-off payment. You don’t have to worry about exceeding any annual mileage restrictions or fines for excessive wear and tear to the car because you'll eventually become the legal owner of it.

Remember, the car is owned by the finance company until the Option to Purchase Fee has been paid. Until then you don't have the legal right to sell the car and the finance company have the right to seize the car if you don't keep up with your payments.

Your finance company may allow you to sell the car before the end of the contract, however, only if the sale goes towards the settlement of the finance.

Finance your next used car your way

If you feel confident that you know what you want from a car finance agreement, then you can go right ahead and arrange your finance online with CarStore. It's simple, easy and quick to do.

However, we know that you may want someone to help you understand everything that's involved with finance. Our personal advisors will be happy to listen to your individual requirements and present you with all the information using plain, jargon-free language. 

Talk to us online, over the phone or contact a CarStore Centre with any questions you may have.