Eastern Western Motor Group in Scotland
Eastern Western Motor Group in Scotland

Hire Purchase Finance Explained


Hire Purchase (HP) is the traditional way to finance a car purchase. You pay off the entire price of the vehicle through a series of monthly payments. At the end of the contract period the vehicle becomes your property.The monthly payment is determined by the amount of deposit paid, the period of the contract and the sale price of the vehicle.

HP is very similar to borrowing a sum of money from a bank and paying it back over a fixed period of time, with interest. Hire purchase is a type of secured loan which are often preferred over alternative (unsecured) loans because they allow a greater borrowing limit. The term "secured loan" means exactly that, a loan that the lender can secure against an asset (in this case, a car).

Below is a short video which explains how Hire Purchase finance works.



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Calls may be monitored for quality and training purposes. Eastern Western Motor Group Ltd is authorised and regulated by the Financial Conduct Authority. Our Firm Reference Number is 310505. Registered Office: 1 Corstorphine Road, Edinburgh EH12 6DD1 Registered in Scotland No. 14833 VAT Registration No. 269233051 We work with a number of carefully selected credit providers who may be able to offer you finance for your purchase. We are only able to offer finance products from these providers.

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