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Representative Example*
What is HP?
If a business uses hire purchase to finance the purchase of a car, it is committing to buying the car outright via a secured loan that is paid back monthly across the period (usually between 3 – 5 years).
Monthly payments are therefore much higher than Contract Hire or Contract Purchase.
However, the business will not own the car until the final monthly payment is made at the end of the term because the lender retains ownership until then.
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35 Months x
£1716/mth
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£3,521 |
£63,603 |
Not Applicable |
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8.9% APR Representative
- On the road cash price after FinanceAcar subsidy - £56,336
- Total amount of credit - £63,603
- Unlimited mileage
- Option to purchase fee £10
- There may be a credit arrangement and/or a completion fee to secure the finance. These are already reflected in the total payment shown above.
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