Own your car —
no balloon payment
Spread the cost of your next car with fixed monthly payments. At the end of the term, it's yours — simple as that.
No impact on your credit score
HP Car Finance, Explained
Hire Purchase (HP) is one of the UK's most straightforward car finance options. You pay a deposit (optional), then make fixed monthly instalments over 12–60 months.
Once the final payment is made — along with a small Option to Purchase fee — the car is legally yours. No surprises, no balloon payment at the end.
Unlike PCP, HP spreads the full cost of the vehicle across your term. This makes your monthly payments slightly higher, but means you're always building towards full ownership.
HP vs PCP at a glance:
With HP, there's no large final balloon payment. You repay the full vehicle cost over the term. Your payments are fixed and predictable. And at the end — the car is yours, outright.
How to Apply
Five simple steps from application to driving away.
Check Eligibility
Complete a quick form. We run a soft credit check — no impact on your score.
Get Your Quote
Receive tailored HP offers from our lender panel based on your circumstances.
Choose Your Car
Pick a car yourself or browse our approved dealer network. We vet every vehicle.
Secure Finance
We handle all the paperwork with the dealer and lender on your behalf.
Drive Away
Collect your car and enjoy fixed monthly payments until it's fully yours.
See What HP Looks Like in Practice
Here's how HP finance could work on a £7,500 car with a 10% deposit.
Divided into fixed monthly payments over your chosen term, plus interest. Own the car outright at the end.
Key Benefits
Here's why HP is one of the most popular car finance options in the UK.
Full Ownership
You own the car outright at the end of the agreement — no balloon payment required.
Fixed Payments
Your monthly repayments never change, making budgeting simple and predictable.
Flexible Deposit
Pay a deposit to lower your monthly costs, or explore no-deposit options.
All Credit Profiles
HP finance is accessible even with less-than-perfect credit history.
FAQs
Do I need a deposit?
A deposit is often optional. Putting money down can lower your monthly payments and the total interest you pay, but we also work with lenders who offer low- or no-deposit HP options.
Will applying affect my credit score?
Our initial eligibility check is a soft credit search — it won't affect your score. A full credit check is only run when you proceed with a lender.
Can I get HP finance with bad credit?
Yes. We work with a panel of lenders who specialise in helping customers with less-than-perfect credit histories. While rates may be higher, there are still flexible options available.
Who owns the car during the agreement?
The finance company retains a legal interest in the vehicle until the final payment is made. Once you've completed all repayments and paid the Option to Purchase fee, ownership transfers to you.
Can I settle early?
Most lenders allow early settlement or overpayments, which can reduce the total interest you pay. Check your specific agreement for details and any applicable fees.
Can HP be used for used cars?
Yes — HP works for both new and used vehicles. It's particularly popular for used cars and we work with hundreds of approved dealers to help you find the right vehicle.