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Hire purchase car finance

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    No deposit options available
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    Apply with no impact on your credit score

Zuto is a credit broker, not a lender. Our rates start from 10.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £6,500 over 48 months with a representative APR of 20.3%, the amount payable would be £193 a month, with a total cost of credit of £2,767 and a total amount payable of £9,267.

What is HP car finance?

Hire Purchase – sometimes called just HP car finance – is a specific form of car financing which allows you to pay for your car in monthly instalments.

You pay the finance  over a period of time, making the purchase affordable in the long term by spreading  your payments on a monthly basis over the term and this also means the vehicle is yours to keep once you pay the final instalment. You may wish to pay a deposit at the start to help you lower the monthly amount, but a deposit isn’t always necessary.

Here at Zuto, we help people to secure no deposit car finance Hire Purchase every day. Thanks to our knowledge of the market and the fact we work with a large panel of lenders, we give you a good chance of tracking down a deal that suits your circumstances.

How does Hire Purchase work?

If you have bad credit, Hire Purchase can be one of the best options for financing your new car. If you don’t mind not owning your car outright while you make your payments, a Hire Purchase option can be a good way to secure the vehicle you want and improve your credit score over time.

Once you’ve got the car, you just need to keep up with your monthly payments. At the end of the contract term, you will have paid off the full price of the vehicle and it’ll be yours to keep.

HP car finance process
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Hire Purchase vs other car finance options

Hire Purchase is a very popular form of car finance, but it’s worth knowing how it compares to the other options available. With Hire Purchase, you ‘hire’ the car from the finance company and pay off the finance over time. Once your final payment has been made you become the legal owner, but if you fail to keep up the payments your car might be repossessed.

Like Hire Purchase, a Personal Contract Purchase (PCP) is another option that’s secured against the car. That means it may be another option for you, coming with the choice as to whether you keep the car at the end, part exchange it or hand it back. To take ownership you need to pay the Guaranteed Minimum Future Value (GMFV) (also known as a “balloon payment”). Terms and conditions apply with a PCP.

The other option is a personal loan which is the only kind of finance which is not secured against the vehicle itself and you have full ownership of the vehicle from day one.

Hire purchase with bad credit

For many people thinking about car finance, bad credit can be a concern. Lots of drivers can get finance arrangements for a new or used car even if they haven’t got a strong credit history or a large deposit. Hire Purchase is one of the more popular options for those who find themselves in this situation. When you are looking for a Hire Purchase agreement for a car, we can speak to our panel of lenders who might be able to help with poor credit car finance.

There are lots of reasons why you might have bad credit. Whatever your situation, get in touch with our team and let us know your plans. The chances are we’ve worked with drivers in a similar situation before, and our team will give you the best possible chance of getting a Hire Purchase deal that works for you.


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