What is a Hire Purchase Agreement?

Tim Carpenter

A Hire Purchase Agreement (HP), when related to car finance, is a type of agreement where the loan is secured against your car. That means you won’t own it until you’ve made all your payments. You might pay a deposit, followed by fixed monthly payments for an agreed period. You’ll probably also have to pay an ‘option to purchase’ fee to make things official, but once you’ve made all the payments, the car will be all yours. Take a look at our complete guide to Hire Purchase car finance agreements to find out more. Rates from 6.9%. Representative APR 19.9%.

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Rates from 6.9% APR. Representative APR 27.4%

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