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Advantages of Hire Purchase

  • You can access newer, higher specification cars. …
  • You can spread the cost over a fixed term. …
  • The interest rate is fixed. …
  • You’ll own the car at the end of the agreement. …
  • Option to pay off the loan early. …
  • There are fewer restrictions.

Weigh up the Pro's and Con's to decide if HP is right for you when buying a car

EmanFounder OnestopSave

Disadvantages of Hire Purchase 

  • No ownership before the end of the contract term.
  • More expensive than buying. 
  • Lower credit score = higher interest rates.
  • Late payments = damage to the credit score.
  • Impractical as a very short-term agreement.

This information is intended for editorial purposes only and not  intended as a recommendation or financial advice