HP car finance
Get a decision in minutes!
If you want to buy a used car, but don’t have all the money to buy it outright, we can help. We offer fast access to HP car finance.
HP stands for Hire Purchase. This is where you hire (or rent), a car from us by making fixed monthly payments. Then, at the end of the term of your loan, you pay an ‘option-to-purchase’ fee. Once this is paid, you own the car, so you move from hiring the car to purchasing (buying) it.
You can choose how long you want to borrow for, from between 3 and 5 years. If you borrow for longer, monthly payments may be cheaper, making them more affordable each month, but you may pay more overall.
Fast access to HP car finance
- Borrow from £4,000 - £20,000
- No deposit needed
- Get a lending decision within minutes
- Completion is possible on the same day you apply
Representative example
You could borrow £10,000 over 60 months with an initial payment of £490.66 (including £199 Admin Fee) followed by 58 monthly payments of £291.66 with a final payment of £490.66 (including optional £199 Option to Purchase Fee).
Total amount repayable will be £17,897.60.
29.3% APR, annual interest rate (fixed) 24.7%.
This example uses the representative APR. This is the rate at least 51% of customers are expected to get.
Lending is subject to status and additional affordability checks. Rates quoted are subject to change and will depend on lending amount and personal circumstances.
Important information
Considering a hire purchase agreement from AutoMoney Motor Finance for a used car? Here are some important risks to keep in mind:
- Delayed ownership: You won't own the car until the final payment is made. Missing payments could result in the car being repossessed.
- Depreciation: Used cars can lose value quickly. You might end up paying more than the car is worth over time.
- Higher total cost: The total amount paid, including interest and fees, will be much higher than the car's purchase price.
- Insurance requirements: Comprehensive insurance is required, which can be more costly.
- Credit impact: Missing payments can negatively affect your credit score, making future borrowing more difficult.
- Repossession risk: Failure to make payments can lead to the car being repossessed, possibly leaving you with outstanding debt.
Please make sure to read and understand your hire purchase agreement, maintain your car and ensure you can afford the payments before committing.
Understanding HP used car finance
Hire purchase (HP) is a popular method of financing a used car in the UK, providing an easy and straightforward way to spread the cost of your vehicle over a period of time. Under a hire purchase agreement, you hire the car from us and make fixed monthly payments over an agreed term. Once you’ve made all the payments, including a small option-to-purchase fee, you own the car outright.
As with any borrowing, it is important to ensure that the loan you take out with us is affordable for you. We will help you with this, but ultimately you need to be comfortable that you can afford your monthly payments.
We will always offer support to clients with money worries, but falling behind on loan payments can affect your credit profile, and can make it difficult for you to pay for other bills and costs.
Our hire purchase agreements are designed to be flexible and affordable, ensuring that you can drive away in the car you need, without putting undue strain on your finances. With AutoMoney Motor Finance, you can enjoy the benefits of a straightforward, transparent financing option that puts you in control.
We also have a range of guides that may be useful during your car buying research.
The HP car finance process
Application
Get started by filling out our simple online application form. Provide us with some basic information about yourself, your borrowing needs, income and credit profile. Our system will quickly assess your application and give you a finance decision within minutes.
Approval and terms
Once approved, our finance experts will discuss the terms of your hire purchase agreement with you. This includes the duration of the contract, the monthly payment amount, and the interest rate. We’ll ensure that all terms are clearly explained and that you’re comfortable with the agreement.
Vehicle selection
With the financing sorted, you can choose your vehicle from our extensive network of partner dealerships. We offer a broad range of makes and models, ensuring that you find the perfect car to meet your needs.
Signing the agreement
After selecting your vehicle, you’ll sign the hire purchase agreement. This contract outlines the terms of your finance, including the repayment schedule and the total cost. Our team will ensure that you fully understand the agreement before signing.
Drive away
Once the paperwork is complete, you can drive away in your new car. It’s that simple! With AutoMoney Motor Finance, the entire process from application to driving off the lot can be completed in a single day.
Why choose AutoMoney Motor Finance?
When you take out HP car finance with us, you should expect to receive world class customer service, including:
Rapid approval process
At AutoMoney Motor Finance, we pride ourselves on our ability to provide rapid finance decisions. Our streamlined application process ensures that you can get a finance decision within minutes. This efficiency means you can focus on choosing the right car rather than worrying about the complexities of financing.
Same-day deal completion
Time is of the essence when it comes to purchasing a car. We understand that once you’ve found the perfect vehicle, you want to get behind the wheel as soon as possible. That’s why we offer the convenience of completing the entire hire purchase deal on the same day. From application to driving away, we aim to make the process as quick and hassle-free as possible.
Personalised finance solutions
Every customer is unique, and so are their financial situations. We offer personalised finance solutions tailored to fit your individual needs and budget. Our team of finance experts will work with you to determine the best terms and conditions for your hire purchase agreement considering your individual circumstances, ensuring that your monthly payments are manageable and within your means.
Transparent and competitive rates
Transparency is at the heart of our operations. We provide clear and competitive interest rates with no hidden fees or charges. You’ll know exactly what you’re paying for, with a full breakdown of your monthly payments and the total cost of the agreement. Our goal is to provide you with a financing option that is both fair and affordable.
We lend against a wide range of vehicles
Whether you’re looking for a compact city car, a spacious family vehicle, or an SUV, AutoMoney Motor Finance can offer you hire purchase car finance on a wide range of vehicles. We partner with reputable dealerships across the UK with a diverse selection of cars that suit every taste and requirement.
Customer-centric approach
At AutoMoney Motor Finance, customer satisfaction is our top priority. We believe in building lasting relationships with our clients by providing exceptional service and support. Our dedicated customer service team is always on hand to answer any questions and guide you through every step of the finance process.
Buy a car on HP car finance
If you want to buy a car on HP car finance, but are unsure which brand of car to choose, have a look through our guides on different brands in the marketplace:
Car brands A - H
FAQs
Yes, it is possible to part-exchange another vehicle.
Yes, you can. AutoMoney Motor Finance has access to a range of solutions for customers with a range of needs and credit profiles.
Yes, your HP car finance agreement is subject to the following fees:
- A document fee – payable with your first monthly instalment; and
- An option to purchase fee – you only pay this if you choose to buy the car, we take this with your final monthly payment if so.
We may also charge fees if you break the rules of your agreement with us. For example, if a payment you owe does not get to us, or if we have to issue you with a default notice.
Full details of all of our charges can be found on your hire purchase agreement. Any charges we apply will be proportionate to the actual cost to us.
Some customers are introduced to us by business partners of ours, for example a broker or a car dealer.
Like all HP car finance lenders, we pay business partners for the work they do when introducing customers to us.
It is important to note that any commission we pay does not affect the interest rate you pay through your HP car finance agreement, or any associated fees. It is a business cost to us.
Where a commission is paid by us, the amount of commission we are paying is set out in the section of your agreement headed “Commission”. This is because we want to be completely transparent with you, not because your costs are affected.
The Financial Conduct Authority is investigating so-called “discretionary commission arrangements” in the motor finance market. Find out more here.