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Contents:
  1. Personal contract purchase - Wikipedia
  2. BMW HIRE PURCHASE.
  3. hire purchase
  4. Advantages of hire purchase

A straightforward route to ownership. This is the perfect way to buy a Mercedes-Benz if you want to work your way up to full ownership, spreading the overall cost over a fixed term.


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  • Spread the cost of buying your car.

Decide the amount you would like to put down as a deposit on your chosen vehicle and agree the term of your agreement. Then throughout the term of your agreement you pay the regular instalments over the agreed term until the remainder of its value is repaid. Finance Personal Finance - Hire Purchase. Hire Purchase.

Personal contract purchase - Wikipedia

How Hire Purchase works. Watch again. Share video Share image.

Hire Purchase features include:. Once you have made the final payment and option to purchase fee, you will own the vehicle.

BMW HIRE PURCHASE.

Fixed regular payments means you can easily budget. A flexible deposit and repayment term means you can tailor the financial agreement to suit you.

Car leasing (Personal Contract Hire PCH) - what you need to know - Top 10s

Monthly payments are not based on annual mileage. Hire Purchase is the longest standing, most established vehicle financing method available.

hire purchase

Over an agreed term, you will repay the capital cost of your new vehicle in monthly installments along with interest incurred. Easy to understand, HP finance is available to both individuals and companies, and is particularly attractive if you ultimately want to own your new car.

How hire purchase works

It allows you to spread the cost over a period of time, which can help you to budget. Hire Purchase is perhaps the easiest to understand of all car finance options , and the process of buying a new car on HP is simple:.

Advantages of hire purchase

There are a number of benefits to HP finance - although in general they are the preferred option for buying used, rather than new, cars. You can spread the cost in order to budget more effectively, the arrangement is relatively simply and flexible.


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Unlike other finance options, like PCP , you'll own the car once you've made all the payments. Finally, HP finance is potentially more accessible if you've been turned down for a personal car loan, as the loan is secured against the car. Other finance options may be more advantageous, however.


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  8. Monthly payments are higher than with PCP finance, while rates can be higher than with car loans.