Hire Purchase (HP) enables you to take full ownership of your chosen vehicle at the end of the agreement. These plans are a popular option, being quick and easy to arrange once the deposit has been paid. Terms are straightforward, with no mileage restrictions, and once the final payment is made, the vehicle is yours. Contracts usually last between 12 and 60 months.
Here's how it typically works:
Personal Contract Hire (PCH) is a form of long-term lease and is ideal for those who wish to hand their vehicle back at the end of the agreement, with no further obligations. PCH is popular among motorists who want to upgrade their vehicle frequently, and for whom the commitment of owning a car outright is undesirable.
Here's how the agreement typically works:
Personal Contract Purchase (PCP) is popular with motorists who have a more limited budget, as monthly payments are typically lower. Essentially, the contract only covers part of the value of the car, with an agreed amount being deferred until the end. Contracts normally last between 24 and 48 months, at the end of which you have three options.
Here’s how it works: