How Hire Purchase (HP) Works

What is HP?

What is Hire Purchase?

Hire Purchase (HP) finance plans are preferred by many motorists for their simplicity. Agreements can be arranged quickly after a deposit has been paid, so you could be behind the wheel of your chosen model much sooner than you think.

Is HP right for me?

HP could be the right option if you want straightforward terms and the option to decide whether to keep your car or trade it in at the end of the contract.

How HP works

  • Choose your car.
  • Agree the amount to be borrowed based on the price of the car less a deposit.
  • Decide upon the length of the agreement.
  • Once all the repayments have been made you have three options:
    • Pay the final amount and become the car’s owner
    • Hand back the vehicle
    • Renew your lease and pick a new model.

HP plans are usually based on a fixed contract, which means the rate of representative APR is decided at the start of the agreement. This means your regular payment will be fixed for the duration of the plan, which helps you to budget more easily.

Why choose HP?

  • It’s quick and easy to arrange your plan
  • Upfront costs are low
  • A choice of payment terms are available, generally between 12 to 60 months
  • Fixed repayments for straightforward budgeting


  • You don’t own the car until the final payment has been made, so you cannot sell it or make any modifications without the prior permission of the finance company.
  • Ownership of the vehicle will automatically be transferred once the final payment has been made.

Make your enquiry

Enquire with Sturgess Motor Group in Leicester today for more information on HP and whether the plan is right for you. We can also help you to choose your next vehicle from our diverse stock.

Make an Enquiry

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