Hire Purchase Car Finance
Hire Purchase Car Finance
Flexible Solutions from RightDrive Car Finance
RightDrive Car Finance is a leading provider of hire purchase agreements that make car ownership accessible and affordable, regardless of your credit history. Whether you're dealing with fluctuating credit situations like new employment, missed payments, CCJs, defaults, or arrears, or if you enjoy a pristine credit score, we offer hire purchase options that are flexible and tailored to your financial needs. This article will explore how hire purchase car finance can be a viable and beneficial route to owning your next vehicle, particularly through the supportive approach provided by RightDrive Car Finance.
Explained
Understanding Hire Purchase Car Finance
Hire purchase (HP) is a popular type of car finance that allows you to buy a car in instalments, with ownership transferring to you at the end of the agreement once all payments, including the option to purchase fee, have been made. It's an ideal solution for buyers who wish to own their car outright at the end of the finance term without the high upfront costs associated with buying a vehicle.
Benefits
Benefits of Hire Purchase:
How does it work
How does HP finance work?
A Hire Purchase (HP) finance agreement works by providing a loan to cover the cost of your new used car minus any deposit. You will then repay the loan in affordable monthly payments plus interest, and your agreement will typically last between one and five years. Once you’ve reached the end of your loan term and paid the final ‘Option to Purchase’ fee, you’ll own the car outright.
If you’re looking to buy a car on HP, you’ll need to pass a credit check first, but you can still secure a loan even if you have a less-than-perfect credit history.
If you’re looking to buy a car on HP, you’ll need to pass a credit check first, but you can still secure a loan even if you have a less-than-perfect credit history.
Bad Credit?
Can you get hire purchase with bad credit?
Yes! You can get HP car finance with bad credit - and it may be one of the more accessible finance options available to you. While your monthly repayments could be higher than they would be with other finance options, you’ll own the car at the end of your loan term and consistently making your repayments on time could help improve your credit score. At CarFinance 247, we work with a panel of lenders so that we can look to help people with a range of credit histories, including those with a poor credit score.
Advantages
What are the advantages and disadvantages of HP?
A car finance loan can help break down the cost of your new used car, but hire purchase isn’t the best choice for everyone. Check out some of the advantages and disadvantages of HP car finance:
Advantages of hire purchase:
You'll own the car after you make all the repayments
There are usually no restrictions on how far you can drive
You might need to pay an Option to Purchase fee but there's no big balloon payment
Agreements can last anything from 1 to 5 years
Disadvantages of hire purchase:
Monthly payments might be higher than they would with other car loan options
You can't sell or modify the car during your agreement without the lender's permission
You won't own the car until you've made all the payments
The future value of your car isn't guaranteed like it can be with PCP
Advantages of hire purchase:
You'll own the car after you make all the repayments
There are usually no restrictions on how far you can drive
You might need to pay an Option to Purchase fee but there's no big balloon payment
Agreements can last anything from 1 to 5 years
Disadvantages of hire purchase:
Monthly payments might be higher than they would with other car loan options
You can't sell or modify the car during your agreement without the lender's permission
You won't own the car until you've made all the payments
The future value of your car isn't guaranteed like it can be with PCP
Options
How RightDrive Car Finance Enhances Hire Purchase Options
Is it for me?
Is HP the right option for me?
Always check your agreement for any restrictions, but buying a car on HP could work for you if:
You want to own your car outright
You want to keep the same car for a while
You need to drive a lot of long distances
Looking for more details? Head over to our blog where we get under the hood of HP car finance with our complete guide.
You want to own your car outright
You want to keep the same car for a while
You need to drive a lot of long distances
Looking for more details? Head over to our blog where we get under the hood of HP car finance with our complete guide.
Compare
Compare Hire Purchase vs. Personal Loan
Torn between hire purchase and a personal loan? Here’s what you need to know:
Do you want to own the car?
Both these car finance options include car ownership. The difference is that with a personal loan you’ll own the car as soon as you pay the seller, while with hire purchase it won’t be all yours until the end of your agreement. If you might want to sell or modify the car before you’ve paid off your full loan, a personal loan might give you the flexibility you need.
How much do you want to pay?
Personal loans can come with higher interest rates than other forms of finance, including HP. This may make your monthly payments with a personal loan – and the amount you pay back overall – higher too. If you’re looking for a lower rate, hire purchase may be a better choice for you.
Do you want to own the car?
Both these car finance options include car ownership. The difference is that with a personal loan you’ll own the car as soon as you pay the seller, while with hire purchase it won’t be all yours until the end of your agreement. If you might want to sell or modify the car before you’ve paid off your full loan, a personal loan might give you the flexibility you need.
How much do you want to pay?
Personal loans can come with higher interest rates than other forms of finance, including HP. This may make your monthly payments with a personal loan – and the amount you pay back overall – higher too. If you’re looking for a lower rate, hire purchase may be a better choice for you.
Our Easy Steps
The Hire Purchase Process at RightDrive Car Finance
Conclusion
Hire purchase agreements provided by RightDrive Car Finance are designed to make car ownership straightforward and accessible, no matter your financial background. With flexible terms, competitive rates, and a commitment to customer service, we ensure that each client receives a personalised and stress-free experience. Contact us today to find out more about how our hire purchase options can help you drive away in the perfect car for you.
