Glossary
HP (Hire Purchase)
HP (Hire Purchase) is a vehicle finance agreement where fixed monthly payments cover the full vehicle value, and the customer owns the car outright once the final payment is made.
Unlike PCP, a Hire Purchase agreement spreads the full cost of the vehicle across the term with no final balloon payment. It usually means higher monthly payments than PCP, but the customer owns the vehicle outright at the end with nothing further to pay.
Related terms