What is Car Hire Purchase?
- No Deposit
- We help find you the perfect car
- PCP and HP from 8.9% APR
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Car Hire Purchase is possibly one of the easiest finance options to understand. You effectively hire a vehicle from a finance company for an agreed period of time.
As such a Hire Purchase finance agreement is one of the most common methods of paying for your new vehicle, typically lasting 2-3 years. It can stretch to 5 years to meet your needs.
You come to an agreement with the finance company about your initial payment (unless predefined by the finance company), your monthly payments and the term of the policy. At the end of the agreement (assuming everything has been paid under the agreement) then the title to the vehicle is transferred over to and you become the legal owner.
As the lender is keeping the ownership of the vehicle until the end of the agreement this gives them more security in the event of payment problems. The lender can also offer you more attractive terms and conditions because they keep ownership of the vehicle until you make your final payment of the car hire purchase plan.
Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 18.8%, monthly payment would be £174.22, with a total cost of credit of £2,362.56 and a total amount payable of £9,362.56. CarMoney Limited can introduce you to a limited number of finance providers based on your credit rating and we will receive a commission for such introductions this can either be a % of the amount borrowed or a flat fee. This does not influence the interest rate you’re offered in any way. CarMoney is a broker not a lender.
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Features
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Benefits
- Once you make your final payment you own the vehicle
- Convenient straightforward application process
- Fixed repayments and interest rates
- Additional protection over a personal loan
- Payments and term to meet your budget
- Keeps existing credit lines free
- There is no need to estimate the mileage at the outset
- Rebate of future interest if you settle your agreement early
- Additional customer protection with regards to the satisfactory quality of your vehicle
Considerations
- The loan is secured against the vehicle. If you miss payments on the loan the vehicle may be repossessed
Hire Purchase for Premium Brands
Car Hire Purchase is a straightforward route to owning a premium vehicle like a BMW. This is a great way to spread the cost of your vehicle over a fixed term while still owning the vehicle at the end of the contract.
At the end of the agreement, the car is yours to keep, sell or trade in for an upgrade! And Nikki will be here for you when you are ready to do just that!
Frequently Asked Questions
Which car should I choose to finance?
When choosing a car to buy and finance, consider your needs and personal circumstances, such as budget, family size, fuel efficiency, performance, features, and type of car (e.g., SUV, sedan, hatchback). Once you have considered your needs and budget, research different models to find out which is best for you!
Can I finance a car without a deposit?
Yes, it is possible to finance a car without a deposit. There are a number of car finance companies that offer zero deposit deals. However, it is important to note that these deals are typically more expensive than car finance deals with a deposit, as the lender will be taking on more risk. You may also need to meet stricter lending criteria to be eligible for a zero deposit car finance deal.
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We’ll sort all the details and you just decide when to collect your new car… or we can deliver it to you!
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CarMoney Ninja Sean
“Great service, Sean Davidson was great and was always trying to help and give me the easiest experience possible. Thank you very much Sean.”
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“Alan, who I spoke with on the phone, was amazing! He sorted everything out for me, it was so easy and was able to get my car the very next day. Fantastic!”
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“Sophie who sorted my finance out for car was amazingly nothing was too much trouble for her always kept me up to date. Five stars Sophie. Thanks for everything”
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“My ninja from start to finish Ellie McGavin I Needed a car it was complete from picking to collecting within 2 days friendly staff great communication brilliant.”
CarMoney Ninja James
“Excellent professional and courteous service nothing too much trouble James was thoroughly committed to helping me source my car”.
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“Frazer from car money made the experience of getting a car simple and easy. Would definitely recommend to family and friends. Thanks again CarMoney!”
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Your Questions Answered
Poor credit history can severely affect your chances of securing any sort of loan/financial service.
Those with a lower credit score are less likely to get competitive rates and may even be refused a loan by some of the lenders. There are, however, ways of getting approved for credit even with a poor credit score, and there are things you can do to improve your score too:
1. Get a Credit Report
A credit report is a good place to start, as it will show you in detail your credit history including your overall score. It will give you an idea of where you’re going wrong and what you can do to improve your chances of getting finance. You can access a copy of your credit report for free from Experian, Equifax or Callcredit.
2. Register on Electoral Roll
If you haven’t already, make sure you register on the electoral roll. Finance companies look at this when they perform credit checks to see if your name and address match up. If you’re registered on the electoral roll, it makes it easier for finance companies to carry out these checks. Being registered won’t transform your credit rating, but it does help and it’s easy to do.
3. Keep up repayments
This may seem obvious, I know but even making sure you pay a phone bill every month or pay off a credit card (if applicable). Small steps are the best ways to gain the trust of the lenders!
4. Keep Applications to a Minimum
The more applications you put in, the more ‘Hard Searches’ will be done on your credit score. If you have a low score and frequently get declined, this can severely affect your score in a negative way. Initially, an eligibility check, or ‘Soft Search’, is a much better idea than a formal application. While it won’t tell you for certain if a finance company will offer you a loan, it will give you a good indication, and it won’t appear on your credit history.
If you wish to read more answers to common questions in this area, why not have a look at: Car Finance with Bad Credit | CarMoney
A common question we get asked! The answer to this question is yes and it doesn’t matter whether you have a car on Hire Purchase (HP) or Personal Contract Purchase (PCP), the process is simple. There are a few steps you will need to take in order to do this:
Get a settlement figure from your current lender. Then, find out the value of your car with any valuation tool. All you will need is your registration. Next, time for a tiny bit of maths, subtract the settlement figure from your car’s valuation price. This will equal the amount of equity available in your car. If you have a positive figure, great news! You can use this amount of money as a part exchange for your next car. However, if the figure is negative, you’ll need to pay that amount of money on top of your new car’s price.
Read more on the subject – Selling a Car that is on Finance | CarMoney
Negative equity is a concept that normally relates to property – falls in house prices can leave owners in a position where they owe more on their mortgage than their home is currently worth. This issue can, for example, present difficulties for anyone who’s thinking about selling a financed car.
When a car slips into negative equity while on finance, it can cause issues. Find out what exactly this means and how to minimize any problems with CarMoney.
You will need a few things to hand when completing an application:
Licence: You will need to at least have a provisional/full UK licence on hand in order to make an application.
Employment status: If you are employed, you will be required to submit payslips from the last 3 months (sometimes more depending on the lender).
Residency: You will need to have proof of address, some kind of utility bill, or a formal document that has your name and address on it. Make sure you send the entire doc, not just the address.
Passport: You will need a form of photo ID that isn’t a driver’s licence, usually a passport.
1. Our team of expert ninjas can help you even if you haven’t found a car yet! With dealerships up and down the nation, we are sure we will find something to your liking!
2. Your designated Ninja will guide you through the process and answer any questions you may have. They are well trained and keen as a bean to get you the best possible finance rates!
3. We provide some of the most competitive rates from our panel of lenders that can cover even someone with a poor credit score.
4. We provide you with impartial quotes from trusted lenders and don’t push you into a certain deal!
5. We will deliver the car to your door (if you need it) without you having to leave the comfort of your armchair!
Bad credit is simply when you have a history of not paying bills, or perhaps you have not had time to build up a substantial credit score.
Your credit score consists of five main factors:
- Payment history
- Total amount owed
- Length of credit history
- Types of credit
- New credit
If you have a history of not making payments, building up debt, and making multiple payment commitments you cannot afford then you will be considered higher risk and will have a lower credit score. Even just being under 21 puts you at a disadvantage, as you haven’t had time to build up a decent Credit Score, all of these will therefore mean you are less likely to be accepted by lenders for finance.
If you wish to read more answers to common questions in this area, why not have a look at: Car Finance with Bad Credit | CarMoney
