The main benefit of HP is that you take ownership of the vehicle at the end of the term, when all payments have been made. On other types of finance, you may not have that option. If you ultimately wish to own a car, HP could be the most suitable way to finance it.
When arranging an HP plan at the dealership, there is no need to set an annual mileage limit at the outset as you would with other types of finance. Agreements can run for between one and five years, making repayments more flexible.Deposits can be relatively low, and are typically around 10% of the car's value.
The deposit you are able to make will affect the monthly repayment amounts. Interest rates are fixed for the duration, helping you to anticipate and manage each payment.You have full use of the vehicle during the agreement while you make payments on HP.
It is important to remember that you do not become the full legal owner until every payment is made. The agreement is usually secured against the car itself, and if you fail to meet your payments it will be recovered.
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