Hire purchase

Hire purchase (HP) is a type of credit, often available from car dealers. It can offer you the convenience of being able to sort out your finance and pick your car in the same place. Under a HP agreement, you hire the car, pay an agreed amount usually in monthly repayments, and become the legal owner of the car at the end of the agreement. The legal owner of the car is the finance company and you cannot sell the car without the finance company’s permission.

Last updated on 23 October 2023