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Hire Purchase
Advantages
- Your payments stay constant, helping you to budget.
- The car is yours at the end of the agreement term, so you can trade it in for another vehicle, or keep it with nothing more to pay.
- Buying a car has been done like this for many years – so you have plenty of lenders to choose from, including many specialising in niche products.
- It is suitable for getting finance to buy a car at auction, because you can get an agreement to borrow a certain amount – so you know what you can afford before you start bidding.
Bear in Mind
- You don’t own the car until you’ve made the final payment.
- The vehicle can be repossessed if you miss any payments.
- The rate of interest you’ll be charged could be higher than any typical example quoted if you have a poor credit record.