Hire Purchase (HP) is a popular type of car finance that lets you spread the cost of your vehicle, plus any interest and the option to purchase fee at the end, by paying fixed monthly repayments over 12 to 60 months to suit your budget.
No minimum deposit is required, so you can choose to either finance the vehicle entirely, or put down a deposit to reduce the monthly payments.
When you have paid off the finance agreement, and settled the option to purchase fee, the vehicle becomes yours.
You may also qualify for additional borrowing to:
This will be added to the total amount borrowed. For more details, ask your dealership.
If you've found your dream car, van or motorcycle and you're looking to finance it, you'll want to check out your finance options. So, how does a Hire Purchase work? Watch our explainer video to fully understand what a HP agreement is and how it works.
For customers comparing hire purchase vs personal contract purchase, take a look at some of the key benefits of a HP agreement:
HP car finance is a finance agreement that allows you to spread the cost of a vehicle through fixed monthly repayments. When you have paid off the finance agreement, and settled the option to purchase fee, the vehicle becomes yours.
Your final payment will include an option to purchase fee. This fee allows us to remove the Hire Purchase Investigation (HPI) marker from the vehicle. That way, if you ever choose to sell it, an HPI check will show there’s no outstanding finance.
Yes. You can settle your agreement at any time and there is no penalty charge for doing so. In order to understand how much you will need to pay, log into MyMotoNovo and request a settlement figure.
You have the right to repay part or all of your agreement early. You must contact us either in writing or over the telephone if you intend to make a repayment. If you repay part of your agreement early, we will ask you how you want us to treat the money. Usually, you can keep the same agreement length and reduce the amount of each remaining payment, but we will tell you about your options.
PCP lets you spread the cost of your vehicle over 36 to 48 months.
Helping you drive your business forward, take a look at our MotoNovo Commercial offering, suitable for business customers.
Take a look at the fees that may be associated with your agreement.
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