Car hire purchase

Lowest Price Guarantee. What is a hire purchase car deal? How does carbase hire purchase work? Is hire purchase available on Arnold Clark? Hire purchase is a way to finance buying a new or used car.

You (usually) pay a deposit and pay off the value of the car in monthly instalments, with the loan secured against the car. This means you don’t own the vehicle until the last payment is made. Plus, your standard monthly payment will never change. The loan that you take out on the car, which you pay back over a set time frame, is secured against the car.

You can also make a personal contract purchase (PCP) deal as an alternative way of buying your car. You can also use our finance calculator to tailor the deposit and terms to suit your circumstances. Are you looking to buy a car ?

THE CALCULATOR IS FOR ILLUSTRATIVE PURPOSES ONLY. THE ACTUAL RATE YOU RECEIVE WILL DEPEND ON YOUR PERSONAL CIRCUMSTANCES, CHOICE OF PRODUCT AND THE AMOUNT YOU WISH TO BORROW.

Once you’ve made the final payment, the car will be yours to keep or sell on, unlike Personal Contract Purchase (PCP) finance. You put down a deposit – which you can stump up yourself or can often be covered by part-exchanging your current car – then you pay off the rest of the outstanding balance via monthly payments over a set period of years. It is usually based on a fixed length of time and secured to the purchase of the vehicle. Get the most out of your smart driving experience.

Most buyers put down a deposit, although a no-deposit option is often available. Hire Purchase, or HP, is one of the most common types of funding used to purchase a vehicle.

More than 80% of new car buyers choose to finance their new car by taking out either a personal contract purchase (PCP) agreement or personal contract hire (PCH). But although these types of car finance might sound similar, there are significant differences between them.

The hire purchase is considered the original car finance product, and it is fairly straightforward to understand and manage. It’s a finance agreement rather than a lease, and once the contract has ende you’ll have the option to purchase the vehicle. Payments are spread out over a period of time, rather than a large sum being paid upfront.

The loan is secured against the asset over a set period between and years, with fixed monthly repayments including interest. There are no mileage restrictions Deposits can be as little as one monthly payment You can choose the most appropriate term to suit your monthly budget Once you have chosen.

Our original hire purchase plan. Put a deposit followed by monthly payments - you own the car at the end of the agreement. Take a look at the video to see how it works or find more information here. You can choose from a variety of leasing options, such as personal contract hire (PCH), personal contract purchase (PCP), hire purchase (HP), as well as lease-purchase deals.

Whether you’re after a For Mercedes-Benz or Ferrari, we’re confident we’ll have the perfect car and payment plan for you. Why should I lease a car? If you use cash basis accounting and buy a car for your business. As the name indicates, with this sort of car finance agreement, you effectively hire a vehicle from the finance company, assuming responsibility for the vehicle, and make payments in monthly installments until the total amount due has been paid in full.

Spread the cost of a car with fixed regular monthly repayments, after which you own it outright. Your deposit is taken from the price of the car. From an accounting perspective, a hire purchase agreement is simply a loan you take to buy an asset such as a vehicle.

The trade-in of an old vehicle is recorded as a sale. This approach is therefore particularly useful when planning a budget. PCH personal leasing is the simplest way of getting behind the wheel of a brand new car.

You hand the car back at the end of the contract. If you like keeping your cars for a long time, PCP and HP deals are usually better value.

You’ll need to pay a deposit of around 10%, then make fixed monthly payments over an agreed time period.