What is Hire Purchase?

At Blade Group, we understand the significance of investing in a new or used vehicle, which is why we aim to deliver competitive prices for all our customers. To help us to achieve this, we have a number of finance options available including Hire Purchase (HP).

How does Hire Purchase work?

Hire Purchase is a straightforward finance agreement that gives you the option to own your vehicle outright at the end of the contract. When you've found the perfect vehicle, you'll firstly agree the amount to borrow based upon its current price minus your deposit. Once finalised, you'll pay a set amount each month that includes an APR until the balance is paid. At the end of your contract, you can then choose to pay a small administrative fee to gain outright ownership. This option is advantageous due to its simplicity, but it's important to make sure your agreed monthly payment amount is manageable.

A Personal Contract Purchase offers a similar option, with monthly payments which are often lower. However, unlike PCP, Hire Purchase agreements won't include a 'balloon payment' at the end of the term, which can make them a more suitable choice if you're certain that you want to own the car outright. You don't need to return the vehicle at the end of your term as long as the original value, interest and admin fee have been paid.

Alternatives to Hire Purchase

Take a look at the other car finance options available at Blade Group - Personal Contract Purchase and Personal Contract Hire – to find the most suitable solution. You can also view all of our latest finance offers on our special offers pages.