One of the most common forms of financing a vehicle is through a
process known as ‘Hire Purchase (HP)’, which allows you to take
ownership of a car once all payments are made. However, how does
Hire Purchase work and how does it compare to other methods of car
finance? This guide to Hire Purchase will explain.
This is a similar process to car leasing except that the car is
yours at the end of the leasing period. You pay a deposit and
monthly instalments over an agreed period before the car becomes
yours – so in effect you are taking the car with a right to buy.
The key to finding a good hire purchase agreement is to get the
right advice as options rates can vary widely.
Many dealers and brokers will offer different
options, but we always assist our customers to give the right
advice with our 25 years of experience of financing. A hire
purchase loan is always secured against the vehicle so there is no
risk of losing your home.
We will always get you the best deal available to us. Please
contact the Autobahn sales team.
Email: Sales@autobahn.co.uk or call
08456 444993 option 1
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The main advantage of a Hire Purchase agreement
is that one can buy something on monthly payments.
Your monthly payments are effectively secured against your car –
and this has both Pros and Cons. Positively, this means you’re more
likely to secure finance than you would be by shopping around for
an unsecured loan as the lender has some ‘security’ in the form of
your car – this is often reflected in better interest rates.
For most, this is a safer form of finance than a regular secured
loan – which puts your house at jeopardy if you can’t meet
repayments.
Interest rates are usually determined by your credit rating. We
will always act in your interest to get the lowest rates of
interest available to us from main stream lenders.
It’s important to determine what the real cost of borrowing will
be. Our Sales Team will always provide you with
full facts so you can make an informed decision.
Reselling the vehicle during the hire purchase term is possible
at any time, but you will still need to pay off the balance of
finance due.
We are able to assist in handling all procedures on your behalf,
without any charges.
Early settlement fees and ‘option to purchase’ fees are
sometimes included in finance agreements. These are not mandatory
on hire purchase agreements but may form part of the agreement.
However, these are usually very low and will only cover admin costs
of finance companies.
We will always get you the best deal available to us. Please
contact the Autobahn sales team.
Email: Sales@autobahn.co.uk or call
08456 444993 option 1
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Hire Purchase is a good option for buying a
large item that you don't want to pay for in one large
sum. With Hire Purchase, you can get to buy a
car without cashing in savings and investments.
However, getting a good Hire Purchase agreement
can be difficult – this is where we come in.
We will always get you the best deal available
to us. Please contact the Autobahn sales team.
Email: Sales@autobahn.co.uk or call
08456 444993 option 1
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