Chat with us, powered by LiveChat Hire Purchase Car Finance (HP) is a great car credit option

Hire Purchase Car Finance (HP)

All the cars we source finance for at Red Potato are sold under a hire purchase agreement. One of the simplest forms is hire purchase car finance which allows you to pay for your car over time, rather than in one bulk payment.

Find Car Finance Today!

We could help you get car finance, even if you:

  • Have no deposit
  • Are in an IVA/DMP
  • Have a CCJ
  • Have previously been declared bankrupt

Apply for Finance

How does Hire Purchase Car Finance work and how can we help?

Hire Purchase Car Finance (also known as HP) could be a great option for you if you are looking to purchase a car and spread the cost, rather than paying for it in one lump sum.

What is Hire Purchase Car Finance?

Hire Purchase car finance is a great car credit option designed to help you spread the cost of paying for a car over a period typically between 12 and 60 months. Once you have made all payments due under the agreement, you will own the car.

You can take out a Hire Purchase agreement on new and used cars, and finance is typically offered by finance companies and car manufacturers. The lending rates will vary depending where you get your loan from, and your credit score can impact whether you are accepted for finance or not.


How does Hire Purchase work?

When you enter into a Hire Purchase agreement, you might pay a deposit to secure the car and you’ll follow this with monthly payments over an agreed period between you and your lender. The size of the deposit you put down will affect the amount you pay back each month – the more you can put in up front will mean you’ll pay lower amounts back each month.

Once you have the car, it is your responsibility to tax and look after. You can drive the car until your heart’s content and not worry about wear and tear or mileage caps as you will end up owning it! You will become the registered keeper of the car after paying your last agreed installment.


Advantages and disadvantages of HP


You are paying towards owning the car, which will later become your assetThe convenience of spreadingIf you don’t keep up with the payments, your car could be repossessed the cost will mean you pay more than if you bought it outright
If you wish to contribute a larger deposit, you can bring down your monthly repaymentsThe convenience of spreading the cost will mean you pay more than if you bought it outright
You are not typically restricted to wear and tear restrictions or annual mileage capsYou will only legally own the car once all payments due under the agreement have been made

How can we help?

We are specialists in providing bad credit car finance and we have helped thousands of people with hire purchase arrangements. If you have a poor credit history or have previously struggled with debt, we can still offer a competitive 19.9% APR Representative, subject to status.

We can help you get car finance today, even if you:

  • Have no deposit
  • Are in an IVA/DMP
  • Have a CCJ
  • Have previously been declared bankrupt


Get started

Enquire about car finance at today and find the best hire purchase deal for you at

This website is operated by Premium Plan Limited. Red Potato is a trading name of Premium Plan Limited, which is registered in England with Company No 05977118. Registered office: Kempton House, Kempton Way, PO Box 9562, Grantham, Lincolnshire, NG31 0EA. Premium Plan Limited is authorised and regulated by the Financial Conduct Authority (FRN: 742272). The Red Potato name and logo are trademarks of Totemic Limited. Premium Plan Limited is a member of the Finance & Leasing Association (FLA).