What is hire purchase?

What is hire purchase?

Hire purchase is similar to buying the new car outright using finance but you do not own the vehicle until you make the final payment which is typically in 3 – 5 years’ time.  Hire purchase is a secured loan based on making monthly payments. Unlike PCH or PCP, you must pay for the entire cost of the car and you will own it once you have paid all the monthly instalments and a final nominal transfer fee. Monthly payments are therefore much higher than when leasing on a contract.

Related FAQs

What is personal contract hire (PCH)?

What is PCP or Personal Contract Purchase?

What are the benefits of hire purchase?

What are the disadvantages of hire purchase?

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