What is Hire Purchase?
A Hire Purchase (HP) agreement is a credit agreement which allows you to spread the cost of buying your new car over a period of time, rather than paying for it all in one go.
When you have decided on your new car, you usually agree to an upfront deposit amount (normally between 10% – 30% of the car’s price) which is followed by your monthly repayments over the term you have selected.
When your HP agreement comes to an end (and all your payments have been made) you become the legal owner of the car.
Advantages of Hire Purchase?
- Simple to apply. Here at MB Motors, we are an authorised credit intermediary. We work with several lenders to ensure you can get behind the wheel of your new car in a simple, affordable, and straightforward way.
- Your choice of car is much more varied. You will be able to access newer, higher specification cars as you are able to spread the cost over a period of time and not have to pay all in one go.
- You can spread the cost of your new car. With a Hire Purchase agreement, you are spreading the cost over a fixed term, which you can select based on your monthly budget. Your monthly repayment is flexible in that you can pay a larger deposit to reduce your monthly repayments.
- Your interest rate is fixed. The interest rate will be fixed for the duration of your agreement so you know exactly what your repayments will be which will allow you to budget accordingly. This is especially attractive with today’s economic situation of rising interest rates.
- There are fewer restrictions. Unlike leasing or Personal Contract Plans (PCP), there are no milage or conditional restrictions with Hire Purchase agreements which leaves you in control.
How do I apply?
Once you have picked out your new car with our sales team, our Business Manager will guide you through the finance application process. You can also apply online via our website
Did you know you can receive finance approval in as little as two hours!
