What is HP Car Finance?
With HP, the loan is secured against the car itself. You effectively "hire" the vehicle while making regular, fixed monthly payments. Once your final payment is made, along with a small 'Option to Purchase' fee (often as low as £10), the car officially becomes yours.
This means no unexpected large payments at the end, just clear ownership.
How HP Works: Simple Steps to Ownership
Choose Your Car
Find the new or used car you love from any reputable UK dealership
Agree Your Terms
We'll help you secure a loan covering the car's cost, minus any deposit you choose to pay
Drive & Own
Make your regular payments, and at the end pay a small 'Option to Purchase' fee (usually £10)
Pros and Cons of HP Finance
Understanding the benefits and considerations helps you make the best choice
HP Advantages
HP Considerations
Is HP Right for You?
HP is an excellent option if:
Ownership is your priority
You want to own the car outright once payments are complete
You drive a lot
There are typically no mileage restrictions, giving you freedom
You prefer fixed payments
Budgeting is straightforward with consistent monthly costs
HP for Bad Credit: A Real Possibility
Even with a less-than-perfect credit score, HP can be a great option. In fact, it's often one of the most accessible finance types for those with poor credit.
While your monthly payments might be slightly higher, the benefit of owning the car at the end remains. Crucially, making your HP payments on time each month can significantly help to improve your credit score over time.