HP Car Finance
Cheap HP Car Finance Deals
- Competitive PCP & Hire Purchase quotes from an extensive panel of lenders
- Get the best available rates on cars from £15,000 – £250,000
- Use a Trustpilot 5-Star rated team with expert knowledge
- Rates from 8.9% APR
- Representative APR 9.9%*
What people have to say about us
I managed to get our home and contents insured instantly when I needed to do so on the 12th January, after moving to a new home. The service was first class, and easy to complete online.
Carrickfergus, United Kingdom
4.75/5 from 3112 customer reviews
HP Car Finance
Compare Cheap HP Car Finance Options
What is HP car finance?
HP, which is short for Hire Purchase, is a method of paying for a car over a set amount of time. Here at Quotezone.co.uk, we can connect you with a range of quotes which are easy to compare so you can be sure you’ll be able to choose the used car finance option that’s right for you.
HP Finance Deals – how does it all work?
When you know you want to get car finance for a used car, you will want to understand how it all works. Here at Quotezone.co.uk, we’re delighted to be able to connect you with a range of competitive used car finance quotes. Understanding any new finance agreement can feel a bit overwhelming if you’re new to it. Here we will break down the ins and outs of an HP agreement.
How does HP Car Finance work?
When you know what car you want to purchase, you can use our simple website to enter all your details. We can then connect you with a range of quotes for used car finance in the form of HP agreements, which is a type of loan.
You will usually pay a deposit, a set amount of monthly payments with interest, and at the end of the agreed term, the car becomes yours (usually with a small administration fee). This type of loan is secured against the vehicle so if you don’t keep up with repayments, you risk losing your car. The type of used car finance deals that are available to you depends on your financial situation.
How is HP finance calculated?
A lender will look at your ability to pay back the loan, using your personal details, information on your total income and credit history. Based on the outcome of these factors, they will offer you an agreement with set terms.
What is HP and PCP in car finance?
HP (Hire Purchase) and PCP (Personal Contract Purchase) are both popular methods of car finance in the UK and are both secured loans. This means that under both of these finance methods the financer owns the car until you have completed your final payment. Essentially they differ in the structure of your repayments as well as the end ownership of the car. With HP financing you make monthly repayments for the duration of the loan term, after which the car is generally passed in ownership from the financer to the borrower. PCP finance also has monthly repayments however this only covers a certain amount of the cars value with a balloon amount being due at the end of the loan term. At this time you can choose to pay off the remaining balloon amount and own the car outright or simply return the car to the financer.
Can HP finance be paid off early?
It is sometimes possible to pay off your agreement early, but you should always check the terms and conditions of your agreement if you plan to do this. Often a fee will apply if you pay off a loan early.
If you pay off a car loan early do you save interest?
Yes, it might be possible to save interest if you pay off your loan early but you should consider that a fee will often apply. Any savings you make with interest might be cancelled out with this fee so you should look at the individual details of your used car finance loan.
Can I apply for HP car finance with poor credit?
Your crediting rating is affected by a number of factors including your income, payment history and total existing credit. Lenders will use this information to make a decision on how much risk they think is attached to your loan. So while most lenders usually don’t lend to people with poor credit, it doesn’t mean it’s impossible.
*Representative Example – Personal Contract Purchase: Cash Price £15,000.00, Deposit £500.00, borrowing £14,500.00 over 4 years at 8.9% Representative APR (fixed). 47 monthly payments of £228.99 followed by a final payment of £7,560.00. Total cost of credit of £3,832.53 and total amount payable of £18,832.53. Based on 8,000 miles per annum, excess mileage charges will apply if this is exceeded. Finance subject to status 18+ only. We are a credit broker and not a lender. Magnitude Finance is a trading style of DSG Financial Services Ltd. DSG Financial Services Ltd is a company registered in England & Wales with a company number 02313903. Our VAT registration number is 511678843. DSG Financial Services Ltd is authorised and regulated by the Financial Conduct Authority under firm reference number 649675