Understanding Hire Purchase

  • Hire Purchase (HP) is a simple and straightforward way to finance your next car.
  • It gives you an option to own the car at the end of the agreement.
  • The APR (Annual Percentage Rate) is set before the contract begins.
  • Flexible loan period – you choose any period to suit your budget between two to five years.
  • You are the ‘registered keeper’ of the car and responsible for the insurance and maintenance of the car.
  • The finance company remains the legal owner until the amount you borrowed has been fully repaid.


  • Quick and easy to arrange.
  • Monthly payments to suit you.
  • Flexible deposit options.
  • Choice of payment terms between 24 and 60 months (2-5 years).
  • Repayments remain the same amount throughout the agreement.
  • No mileage restriction.
  • Most consumer credit agreements are regulated, giving you additional rights and protections under law.


  • The finance company owns the vehicle until you make all your payments including the Option to Purchase Fee.
  • Since you do not own the car until all payments have been made, you cannot sell or modify it without the finance company’s permission.
  • It is important that you keep up to date with your monthly repayments, if you are having any difficulties, the vehicle may be at risk.
  • You can end your agreement early. How far into your agreement you are will affect the amount left to pay the finance company.

Before you decide upon the type of finance agreement you wish to proceed with, please ensure that the monthly payments you agree upon are affordable and that you are not aware of or expect any significant changes to your income or expenditure during the length of your chosen agreement.

We at Listers want to ensure that you fully understand all the options available to you and your chosen credit agreement. Please contact one of our managers at your dealership. They are fully trained and happy to discuss any aspect of financing your vehicle and are on hand to answer any questions you may have.