If you are looking for a very straightforward way to buy a car, then Hire Purchase (HP) is a very accessible method. The essential difference between this and either PCP or PCH is that you will fully own the car at the end of the agreement upon payment of the final balance. These contracts are uncomplicated, can be quickly organised and can be set up through most car dealerships.
In essence, a Hire Purchase agreement gives the buyer an option to buy the car at the end of the agreement period. Normally set up on a fixed contract basis, meaning that APR (Annual Percentage Rate) is established before the contract starts to run. This approach is therefore particularly useful when planning a budget. The period of the loan is also fixed – running in most cases for periods of three to four years respectively – and the finance agreement is secured against the car being bought.
If you are the official registered keeper of the car you will also have additional responsibilities. Ensuring the car is insured and maintained (and where appropriate obtaining an MOT document) is essential. Be aware however the finance company is the legal owner until the full amount borrowed has been fully repaid.