HP at Humming Bird
Hire purchase combines elements of both a loan and a lease. You reach an agreement with the dealer to pay an initial deposit and then pay off the balance in monthly instalments over an agreed period of time. At the end of this period, the car is yours.
Unlike a lease or a personal contract purchase agreement, the residual value of the vehicle is not taken into account. Instead your monthly payments on a hire purchase agreement are determined by the retail price of the vehicle, the size of the deposit and the length of the contract.
Our Hire Purchase agreements can run for up to 5 years, and then, once all the payments are made, you become the owner of the vehicle.
You can change your vehicle at any point during the agreement. A settlement figure is agreed, saving some of the interest charges.
The benefits of Hire Purchase
- You can buy something you couldn’t otherwise afford
- The fixed repayment period helps you plan your finances to put your mind at rest.
- You don’t have to use bank borrowing to fund the vehicle purchase
