Hire Purchase Finance

When it comes to financing vehicles, a Hire Purchase agreement is one of the simplest ways to secure finance for the car of your dreams. This method lets you pay for your car over a number of easy, fixed monthly payments, usually over a specified period between 2 and 5 years.

These monthly finance payments are fixed at the beginning of your Hire Purchase (HP) agreement term, alongside the interest rate you will be expected to pay. No surprises. After your initial deposit has been placed, these payments will continue over the course of the contractual term – and the car officially becomes yours once the final outstanding payment is completed.

As part of our unmatched car finance packages, Hire Purchase finance provides a simple and straightforward way of getting the keys to your dream vehicle.

With a range of flexible deposit options to choose from at the start of your agreement and fixed monthly finance repayments, a Hire Purchase plan with Magnitude Finance is one of the best options for those who wish to keep their car once their contract is over.

You can customise your agreement length to suit your own financial circumstances, opting to make monthly repayments in larger chunks if you are keen to get those keys sooner rather than later.

Unlike a PCP, you are not bound by annual mileage restrictions.

The fact you are paying the car off in full does mean that monthly payments are typically higher than that of a PCP, but those higher payments are paying off a larger percentage of the car.

Any questions? Get in touch with our concierge service today by calling 01943 660703 or message us using the Live Chat or WhatsApp facilities to find out how we can help.

With Magnitude Finance, we’ll always take the time to understand your situation. When you first come to us for a no-obligation chat — whether that’s for a query or quote — our team will always give you the best options we have available.

Hire Purchase first requires an initial deposit which you pay upfront. This is usually around 10-40% of the car’s purchase price, the rest is paid in monthly instalments. The value for each of these repayments will be made clear to you at the start of your agreement, so you always know exactly how much you need in your monthly budget.

Although Hire Purchase offers great flexibility and budgeting potential, we ask our clients to be mindful that it can results in higher monthly payments when compared with other finance options.

Much like a mortgage, finance will be secured on your chosen car – so it’s important to remember that you are not the owner until that last payment is made at the end of the agreement period.

As with any Hire Purchase agreement created by a finance provider, we ask you to remember that you are legally bound to the terms as outlined within the package. You must think about whether you’ll still be able to keep up with repayments should your circumstances change.

Until the last instalment on your Hire purchase agreement is paid in full, the vehicle is still under the ownership of the lender, and missing these charges may have further repercussions on your credit rating.

Unless you have paid a third of the total amount payable, you are also liable to have your vehicle repossessed in the event of a default. This can occur without a court order.