Hire Purchase (HP) finance

Hire Purchase (HP) is a finance plan that allows you to spread the cost of buying a car over an agreed period of time. Here’s what you need to know to help decide if it's right for you.

How HP works

You pay a deposit followed by fixed monthly instalments until the agreement comes to an end. The length of your agreement can be between 24 and 60 months and no matter how many miles you drive, there won’t be any excess mileage fees.

Search used cars

HP might be right for you if you:

  • Want to own the car without making a large final payment when the agreement ends.

  • Are happy to pay higher monthly payments than a PCP agreement as there isn’t a large final payment.

  • Like to know exactly how much you’re paying every month.

“I opted for HP finance and I found the whole process very simple and easy to do. No great long list of questions and I got my application accepted in minutes.”

Paul Paterson

What happens at the end of the agreement?

You’ll likely have to pay a small 'Option to Purchase' fee at the end of your agreement, which typically costs between £1 and £10. This covers the cost of transferring ownership of the car over to you.

After all monthly payments and the Option to Purchase fee have been made, you'll become the legal owner of the car.

Alternatives to HP finance

If you’d like to have more options at the end of your agreement and pay lower monthly instalments, Personal Contract Purchase (PCP) is another way to finance a car. 

Popular questions about Hire Purchase

You might also like

Find your next car

Browse our range of high-quality used Cazoo cars.