Hire Purchase at Charles Hurst Toyota
Hire purchase is a way of paying for a new or used vehicle. You’ll pay an initial agreed deposit, then pay off the remaining value of the vehicle plus interest in fixed monthly instalments.
Essentially, you are paying off a loan that is secured against the vehicle you’re buying and won’t own the car until all your monthly payments are made. In short, you’re hiring the vehicle for a contracted amount of time, then you’ll have the choice to buy or return it to the dealership once this time is up.
Perfect for those who know they will be looking to move on to another car once the agreement period is over.
Pay monthly instalments over an agreed term and at the end decide if you would like to own the car outright.
When you lease a car, you don’t own it and will give it back to the finance company once your contract is finished. You won’t have to pay a deposit, either.
On the other hand, a hire purchase gives you the option of taking ownership of the vehicle at the end of the contract and you have to provide a deposit.
If you wish to settle a hire purchase agreement before the end of the contract, then you are entitled to make early repayments to your finance company.
Get in touch with them directly for advice on how best to do this.
This depends on your circumstances, as there’s no one-size-fits-all finance option. Hire purchase is highly flexible, convenient and easy to organise, offering you the choice to take or return the vehicle at the end of your term.
It’s also a great choice for those who have a bad credit history and may otherwise not be offered a loan. However, it’s worth noting that you do still need to have a good credit rating, in order to have a better chance of being offered the advertised rate of interest.
Your hire purchase contract will be tailored to your specific needs, including the amount you pay monthly and how long you have to pay this off.
It’s also important to remember that hire purchase monthly payments are usually higher than PCP or leasing deals, depending on your circumstances, vehicle and agreement.
You’ll be offered a choice of payment terms, including how long you have to pay off your hire purchase. Typically, this is between 12 and 60 months, which equates to one to five years. This ensures you can work around your monthly budget.
No, you cannot transfer your hire purchase contract to another person. You’ll have to wait until you’ve gained outright ownership of the vehicle, before you can sell it on or gift it to another person.
If you’re struggling to make your monthly payments, get in touch with your financing company or contact us to have a discussion about your options.
As the car is not owned until the end of the term you cannot sell or modify it without first seeking the permission of the finance company. Under a Conditional Sale agreement, ownership of the car will automatically transfer once the final repayment is made.
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