Warning: You may have to pay charges if you pay off a hire-purchase agreement early.
Warning: If you do not meet the repayments on a hire purchase agreement, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit, a hire-purchase agreement, a consumer-hire agreement or a BNPL agreement in the future.
What is the difference between HP and PCP?
PCP finance is a version of a hire purchase agreement. HP payments can be divided between 36 to 60 months. PCP is only available for 36 months. HP has only one end of term option; once the final repayment has been made, you have full ownership of the vehicle. Where as, with PCP, there are three options at the end of a contract; upgrade vehicle, return your vehicle, or make the final payment to take ownership of the car. There is also no mileage range agreed on a HP agreement.
Can you settle a HP finance agreement early?
Yes, it is possible to end your hire purchase (HP) finance agreement early. To terminate the contract early, you must pay any instalment that is in arrears and three months future interest.
Are monthly repayments variable?
Monthly payments remain the same for the duration of the agreement, as the interest rate is fixed. This is subject to no missed payments.
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