What is Hire Purchase (HP)
Hire Purchase, also known as HP, is perhaps the best known way of financing a new vehicle. It is basically a secured loan, meaning that the car finance company lends the money to pay for your new Vauxhall, but retains a right to the vehicle. The way hire purchase works is that you make a regular monthly payment over an agreed term – usually between 12 and 60 months – after which you have full ownership of the vehicle from a legal standpoint. The secured loan aspect of hire purchase is that, should payments not be made on the car loan, the finance company has the right to take the car back.
Hire purchase interest rates are set by the finance provider and can vary depending on the amount being borrowed, the repayment period and also the deposit, as well as other factors.
Benefits Of Hire Purchase (HP)
One of the major benefits of hire purchase for many people considering a new Vauxhall is that, with fixed monthly payments and the ability to spread the repayment period, it is quite easy to budget and find a HP repayment schedule that fits in with existing expenditure.
The fact that varying sizes of deposit can be made with a new car hire hire purchase agreement helps people further, by allowing them to make a significant downpayment on their new Vauxhall – either through part-exchanging an existing vehicle or a cash deposit – which then means the monthly repayments are less.
Although perhaps stating the obvious it is worth making it clear that using hire purchase for a new car means that you are buying the car outright. This means the car can be personalised as desired, kept for many years after the payments have been made or sold at any time. If the car is sold any outstanding finance would have to be cleared.
Vauxhall Cars available on Hire Purchase (HP)
Vauxhall Vans available on Hire Purchase (HP)