What is Hire Purchase?

Tates is pleased to offer its customers a vast range of flexible finance contracts for its customers. You’ll find finance deals available on all of our new cars at each of our dealerships. If you have a car in mind, but are unsure about your options, Tates’ finance experts can provide you with information and various offers through our Hire Purchase plans.

Hire Purchase (HP) is when you pay off the total cost of a car gradually over time. Once you have selected the car of your choice, you typically make a deposit based on a low percentage of the overall value of the vehicle. Sometimes manufacturers make a cash contribution to this deposit.

Over a period of one to five years, you will make a payment each month by direct debit or standing order to pay back the original price of the car. This forms the finance agreement, and failure to make these payments will result in the car being taken away and will damage your credit rating.

At the end of the lease and once you have made your final payments, you are then the owner of the vehicle. HP is a good option for drivers who want more options at the end of the lease, and who have long term plans to eventually own a car. You can enjoy fixed, low-rate interest on an HP contract, and plans can be catered to your budget. The more you pay each month, the shorter the lease. Once you have paid back 50 percent of the car’s overall cost, you may be eligible for a trade in before the lease is complete.

Like with all forms of borrowing, carefully check the terms and conditions of the HP plan and ensure you understand what is required. Contact the friendly team of experts at Tates for more information.