Hire Purchase (HP)
Hire Purchase is perhaps the most well known method of motor vehicle finance and can be tailored specifically to the individual or company - both new start business and established companies. Hire purchase (HP) agreements provide both companies and private individuals with car finance to fund their motoring needs. Even if you are a new start business which has no history; an established company or perhaps as a private individual.
Hire purchase as a method of car finance is a popular and beneficial choice for private consumers as well as some companies or sole traders; including those companies (both established companies or new start businesses). Hire purchase is a very easy way of spreading the cost in budgeted monthly payments over a fixed period of time. Under a hire purchase (HP) agreement, you pay an initial deposit followed by the monthly payments (a portion of the money you borrowed plus interest) over an agreed period - usually 36 or 48 months. At the end of the hire purchase agreement the vehicle then becomes your property. A hire purchase agreement can be an ideal solution for those individuals who receive a monthly car allowance, as all or part of the allowance can be used to fund the monthly payments on the hire purchase agreement and with any shortfall between the individual's car allowance being made up by the user.