What is Hire Purchase car finance?

A popular form of car finance, Hire Purchase is also referred to as HP for short. When deciding on the type of car finance for you and your needs, it’s important to have an in-depth understanding before entering into an agreement. 

Here at First4car.com, we want to help you make an informed decision when it comes to financing a used car. An HP agreement could be the ideal solution if  you’d prefer to pay for a vehicle over a set period of time. 

How does HP car finance work?

Because of its flexible terms, a Hire Purchase agreement could be a beneficial choice when it comes to funding a used car. There are three main parts to an HP deal:

  1. Firstly, you’ll need to decide if you can afford to make an upfront payment. This will help bring the monthly repayments down during the hire period (it may be possible to secure a zero deposit agreement to fund a used car - speak with us about your options).
  2. Secondly, the initial deposit you pay will dictate the amount of money you owe back to the lender each month, and for how long.
  3. Lastly, when the final payment is made, the car is yours! You can also decide to sell or part-exchange the vehicle if you’d prefer an upgrade. 

Understanding the advantages and disadvantages of an HP agreement

We do of course recommend that you only enter into a Hire Purchase agreement if you can afford to make the monthly repayments. If you fail to keep up with the fees as outlined by the lender, your car could be repossessed. 

For complete transparency of what to expect from an HP deal, we’ve listed the advantages and disadvantages of entering into this type of agreement: 

HP advantages

HP disadvantages

You automatically become the owner of the car at the end of the agreement.

Monthly repayments tend to be higher with an HP deal, as you’ll own the car at the end of the contract.

Monthly payments are made manageable thanks to fixed interest rates agreed at the beginning of the term.

You won’t actually own the car until after the final repayment amount is made - failure to do so may result in the car being repossessed by the lender.

Zero deposit deals are more commonly associated with HP deals.

The car can’t be altered or modified in any way until you are the owner and have paid back the finance company in full.

Hire Purchase deals on used cars at First4car.com

Speak to us about securing a competitive Hire Purchase deal on a used car. We proudly stock around 150 nearly new and secondhand vehicles from our family-run dealership located in Pudsey, Leeds

No matter what type of car you’re looking for, we are confident we can help you find the right vehicle for your needs. Whether you’re searching for an estate-sized car to carry extra cargo, an MPV to ensure you can fit in the whole family, or a convertible to feel the wind in your hair, then rest assured that you’ve come to the right place. 

Finding a finance deal to fund your used car doesn’t have to be confusing - First4car.com is here to help! We’re a leading used car dealership in Leeds, serving customers from across West Yorkshire and beyond. Pop in for a visit and feel at home with our friendly team who will put you at ease straight away - when you find a car that makes you happy, we’re happy!  

In the meantime, why not search our used cars online.


First4car.com finance - the small print

We work in partnership with a number of third-party finance companies, such as; Evolution, Close Brothers Motor Finance, MotoNovo, Santander, and Blue Finance. Get in touch to discuss your requirements or complete a free 'soft search credit check' online - you’ll find this available on each of our used car listings. This check does not affect your credit score and has no impact on any future credit applications you might make. It's quick and easy to apply either online or over the telephone.
We can even get your finance approved over the phone - you can then agree the contract and sign it remotely, and in some instances, even collect the car on the same day. Simply click on the vehicle of your choice to find out more - scroll down the page and click the green Free Credit Check button..
We are trading as a credit broker and not a lender, and are authorised and regulated by the Financial Conduct Authority, firm reference 652258. We can introduce you to a limited number of lenders, while providing details of finance products available. We will not charge you a fee for an introduction but may receive a commission from the lender. Lender’s commissions may vary. The commission received does not influence the interest rate you will pay. For questions about commission, please speak to us. 
Representative finance examples are for illustrative purposes only. Finance is subject to status and credit acceptance. Terms and conditions apply. Available to driver’s aged 18 and over - UK residents only. Guarantees and/or indemnities may be required. Excess mileage and damage charges may apply when the vehicle is returned.
For those customers wishing to use their own finance company outside our partnered finance providers, a fee of £399 is added to the price of your vehicle to cover administration costs. First4car is regulated by the FCA for Consumer Credit. All our sales team are SAF APPROVED having successfully passed the Specialist Automotive Finance Competency Test. We are committed to protecting your personal data. Please see our Privacy Policy for further details.
Transport For London

Cars need to meet minimum emission standards when travelling in the Ultra Low Emission Zone (ULEZ) or the daily charge must be paid.

Minimum emission standards

Petrol: Euro 4
Diesel: Euro 6

The ULEZ will be enforced based on the declared emissions of the vehicle rather than the age. However:

Information from Transport For London

Check this car on the TFL website before purchasing: https://tfl.gov.uk/modes/driving/ultra-low-emission-zone/vrm-checker-ulez


At First4car we charge an admin fee of £50 when you purchase a used vehicle from us. The admin fee pays towards the preparation of your new car, to make sure it’s safe and immaculate when you drive it away.

Admin fee is charged as listed below: