Fixed term funding
Hire Purchase is perhaps the most traditional of funding methods. The monthly payments are determined by the amount of deposit initially paid, the period of the contract and the overall price of the vehicle. Once all the payments due under the agreement have been made the title passes to you and you are free to keep or dispose of the vehicle as you see fit. Should your circumstances change you are able to settle the agreement early, and your finance company will be happy to provide a figure for this at any time.
A typical hire purchase option will consist of paying a low deposit amount (maybe 10% of the vehicle price), have no mileage restrictions and entitle you the customer to eventual ownership of the vehicle.
Essentially, the Hire Purchase funding option is best suited to those customers who want simplicity. With the funding secured against the vehicle, finance acceptance may be easier to obtain than an equivalent unsecured personal loan and as such can help in protecting the customers first line of credit, the amount of money that the customers bank will lend without asking for further security.