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Why would I choose to Hire Purchase a car?

Hire Purchase is a finance scheme similar to a personal loan, with fixed monthly repayments for a term you choose. The main difference is that the finance is tied to the car, and the loan provider owns the car until the loan is fully repaid.

Details vary, but generally

  • You select the car you want from the dealership and they arrange finance for you
  • You effectively 'hire' the car for an agreed period of time. The monthly cost includes the loan interest cost
  • At the end of the hire agreement, you pay an administration fee and ownership of the car is transferred to you


  • For new cars, competitive finance deals may be available through the manufacturer

Things to consider

  • You don't own the car or vehicle until the end of the contract, so you can't sell it
  • Normally you will have to get permission from the finance provider to make any modifications or add a private registration plate
  • Schemes may have extra fees, such as a setup fee and a final repayment fee, which can increase the cost
  • As you're repaying the full value of the car, short term Hire Purchase agreements may require a high monthly repayment