Hire Purchase (HP) is perhaps the most common car finance product. HP allows you to use the car while paying for it and, at the end of the agreement, you can take ownership of it with an additional sum called the 'Option to Purchase Fee'.
The car is in fact the security for the agreement. This means that hire purchase car finance is often a popular choice for people with poor credit ratings. However, if you fail to meet your monthly payments, your car could be taken away.
To begin your HP agreement, you will need to put down an initial deposit. Although this can vary, it is usually around 10% of the value of the car.
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