With Hire Purchase it is possible to decide (within certain boundaries) the amount you are able to pay as a deposit. This will directly affect your monthly repayments, and could influence the interest APR you are offered. In most cases HP will work out more affordable than an unsecured loan overall, and gives your assets and personal credit greater protection.
Your HP agreement could run for just one year or up to five. If interest rates increase, this does not affect the amount fixed at the start of the plan. When the term ends, the 'option to purchase' fee will apply if you wish to own the car. You must make this payment – and all others – to take legal ownership. Otherwise, simply return the vehicle with nothing more to pay.
Modifying the vehicle or selling it on are both forbidden while the HP term is still running. The debt you are repaying is also secured against the car. Should you miss payments or fall behind, it will be repossessed by the lender.
Rockingham Cars provides new and Approved Used cars from Abarth and Mazda – and Hire Purchase could be your ideal route to ownership. Speak with a finance specialist at our Corby location to learn more.