A Hire Purchase (HP) agreement is just one of your car finance options at GO Vauxhall. It is popular for its simplicity and potential affordability. Customers with a limited ability to make a large deposit could find HP attractive – and discover more cars to choose from.
The deposit amount can be adjusted, and is typically around ten percent of the car's value. The remaining amount is split into monthly payments, with agreements usually running for between one and five years. The length of the plan is fixed at the start, helping you to budget and plan for each payment.
A longer plan could mean that the monthly amount payable is lower. However, this may be balanced out by higher payments when a very low deposit has been paid. Finding the right, tailored plan will give you a realistic idea of what you can afford. The interest rate on HP remains the same for the length of the agreement, so you will always know what this amount is.
It is important to remember that you do not own a vehicle on HP until all payments have been made. You can then continue to enjoy it or sell it on privately. Until then, you must make all payments on time or risk the car being repossessed. In some cases, it is possible to return the car with nothing further to pay, giving you the freedom to choose another model.
For more information on whether HP is the right finance option for you, feel free to contact your local dealership, and our friendly sales team can talk to you through the options available.