If you choose to pay for your vehicle on a Hire Purchase agreement, it means you will normally pay an initial deposit and then pay off the entire value of the vehicle via monthly installments.
Once all payments are made, the Hire Purchase agreement ends and you become the owner of the vehicle.
This is a popular option for many as it allows you to drive away in a vehicle that you may have been unable to purchase outright. Unlike PCP or PCH contracts you don’t need to estimate your mileage at the start of the agreement so you won’t face any excess mileage charges. However, something to bear in mind when taking out a Hire Purchase agreement is that you won’t be able to sell the vehicle without settling the finance first.