Hire Purchase Calculator
Calculate your HP monthly payments, total cost, and see when you'll own your vehicle.
HP Finance Calculator
Enter your vehicle and finance details to calculate your Hire Purchase payments
Understanding Hire Purchase
What is Hire Purchase?
Hire Purchase (HP) is a secured loan where you pay a deposit followed by fixed monthly payments. The finance company owns the vehicle until the final payment is made. Once you pay the Option to Purchase fee, ownership transfers to you.
HP vs PCP vs Bank Loan
- HP: Fixed payments, own at end, no mileage limits
- PCP: Lower payments, balloon at end, mileage caps
- Bank Loan: Own immediately, unsecured, higher rates
- HP best for keeping the vehicle long-term
- PCP better if you change cars frequently
Early Settlement Options
- Voluntary Termination: After 50% paid, return car
- Early Settlement: Pay off balance, keep car
- Settlement figure usually less than remaining payments
- Check your agreement for specific terms
- May affect credit score if terminated early
Tips for HP Agreements
- Larger deposit means lower monthly payments
- Shorter terms cost less in total interest
- Check for admin fees and charges
- Ensure GAP insurance is considered
- Compare APR across different dealers