Vehicle finance commission complaints
The Financial Conduct Authority has published their consultation paper on the proposed motor finance compensation scheme. You can find the latest information on our website here:
Latest informationHire Purchase (HP)
For Limited companies looking to own the vehicle in the long run.
How Hire Purchase works
Customers put down a deposit and borrow the rest of the cost of the vehicle. They pay the remaining amount back monthly over the term of the agreement. At the end of the agreement, your customer can pay the Option to Purchase fee to own the vehicle, or hand it back.
Available for cars, motorcycles and vans.
Pay the deposit
Your customer puts down a deposit of around 10% of the vehicle price and pays the remaining cost of the vehicle over the term of the agreement.
Fixed repayments
Monthly repayments are fixed during the agreement and spread equally throughout the term, including interest. The agreement is up to five years (60 months).
Optional balloon payment
Your customer has the option to make a balloon repayment at the end of the agreed term. This can help to reduce their monthly repayment amount.
Choose to own or return the vehicle
After your customer has made the final payment, they can pay the ‘option to purchase’ (OTP) fee and become the legal owner of the vehicle, or hand the vehicle back to us and walk away.
Finance is secured against the vehicle
If your customer is unable to keep up with their payments, we may repossess the vehicle.
See how it works
An introduction to Hire Purchase (HP), why your customers might consider it as a finance option, and things to think about.