Car finance
Compare HP car finance and understand deposits, monthly repayments, ownership and total cost before you commit.
Fixed monthly repayments
Usually cover vehicle cost plus interest over the term
No large PCP-style balloon payment
Path to ownership is typically more straightforward
Own the car after completing the agreement
After all required payments and any purchase fee
HP finder
Enter the car price, deposit and repayment term to compare compatible Hire Purchase options.
£0 is allowed in the calculator — matching products may still require a deposit.
Amount financed
£13,000
Car price minus deposit / part exchange
Ownership
Own after final payment
Compact cue — full detail in product cards
Ownership: You normally own the vehicle after the agreement is fully repaid and any applicable purchase fee is paid. Deposit and fee rules vary by product.
Comparing here is not an application. Rates and eligibility are subject to status and may change.
Compare the total cost, not just the monthly payment
A longer term can reduce your monthly payment but increase the total amount you repay. Check deposit requirements and any purchase fee on each product.
Set car price, deposit and term, then press Show HP finance.
How HP works
Hire purchase spreads the financed cost of a car over an agreed term with fixed monthly repayments. Deposit rules and fees vary by product — do not assume every deal is structured the same way.
You usually pay a deposit or use part-exchange towards the car. Deposit rules vary by lender and product — not every agreement allows £0 deposit.
Monthly payments typically cover the financed amount plus interest over the agreed term, without a large PCP-style optional final payment.
The finance provider usually owns the car during the agreement. Ownership normally transfers after all required payments and any applicable purchase / option-to-purchase fee are paid.
Some products include arrangement or option-to-purchase fees. Fee structures differ — always confirm the current product terms rather than assuming they match another deal.
Ownership & cost
HP is often chosen for a clearer path to owning the car. Still compare total amount payable, not the monthly figure alone.
Under hire purchase, you normally own the vehicle only after completing the agreement — including any purchase fee required by the contract.
Add deposit, monthly repayments, interest and fees. A lower monthly figure can still mean a higher overall cost if the term is longer.
A larger deposit can reduce the amount financed and monthly repayments, but products differ on minimum deposits. Do not assume £0 is available on every deal.
HP does not usually rely on a large optional final payment or mileage allowance in the same way as PCP. Still compare APR, fees and total cost side by side.
Compare structures
The same car can look cheaper monthly under one structure and cost more overall under another. Use this table to compare ownership, payments and end-of-agreement options.
| Comparison point | Hire Purchase (HP) | PCP | Personal loan |
|---|---|---|---|
| Ownership during the agreement | Usually the finance company | Usually the finance company | You (loan is separate from the car) |
| Deposit | Usually required | Usually required | Often not required |
| Monthly repayments | Typically cover cost + interest | Often lower than equivalent HP | Set by loan APR and term |
| Optional final / balloon payment | Not in the same way as PCP | Usually yes, if you want to keep the car | No |
| Mileage / condition limits | Usually none from the lender | Often apply if you return the car | None from the lender |
| At the end of the agreement | Ownership generally passes after all required payments and any purchase fee | Return (subject to terms), pay the final amount to keep it, or part-exchange where allowed | You already own the vehicle |
The cheapest option depends on APR, deposit, agreement length, fees, any final payment and what you plan to do with the vehicle. This is general information, not personalised advice.
Also compare: All car finance · PCP · Personal loans
Leaving early
Plans can change. Understand settlement figures and any rights in your agreement before you act — this is general information only.
Many HP agreements allow you to settle early. Ask the lender for a settlement figure before you decide — costs or conditions may apply.
Under some consumer credit agreements, voluntary termination rights may apply once you have paid a required proportion of the total amount payable. Rules are legal and product-specific — check your agreement and seek regulated advice if needed.
Missing repayments can affect your credit file and, under HP, the vehicle may be at risk if you fail to keep up payments. Contact the lender early if you are struggling.
Detailed guide
Extra context after you have compared products above.
Hire purchase (HP) is a common way to finance a vehicle in the UK. You usually pay a deposit, then fixed monthly repayments covering the vehicle cost plus interest over an agreed term.
The finance company typically owns the vehicle until you have made all required payments and any applicable option-to-purchase fee. Ownership then generally passes to you.
Unlike many PCP agreements, HP does not usually include a large optional final or balloon payment. Monthly repayments can therefore be higher than an equivalent PCP quote, but the path to ownership is more straightforward for many buyers.
Always compare representative APR, deposit, fees and total amount payable — not the monthly figure alone. This is general information, not personalised advice.
FAQs
Ownership, deposits, early settlement and how HP compares with PCP.
Last reviewed: 9 September 2026
Product data last checked: 9 September 2026
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Written by
Chief Finance Editor
Teresa leads WiT Money’s financial editorial content, helping ensure guides, comparisons and tools are clear, accurate and useful for UK consumers and businesses.
Last updated 9 September 2026
If you spot something that needs correcting or want to contact our editorial team, get in touch.
5 min read
Unsecured personal loan options if you prefer ownership from purchase.
Representative APRs and product details are taken from provider disclosures and may change. Your rate depends on your circumstances. Credit subject to status. Always confirm current terms on the provider’s website. For HP and PCP products, the vehicle may be at risk if you do not keep up repayments. Credit brokers are labelled separately from lenders.