How does Hire Purchase work?
Customers put down an initial deposit (typically around 10% or more of the vehicle’s value) and then make monthly payments for a fixed period – typically between 12 to 60 monthly – at the end of which they become the car's legal owner.
At this point, transferring ownership may require a relatively small fee of £100 to £200. The more deposit you put down on a hire-purchase deal, the lower your monthly payments are and vice-versa.
With hire purchase, it may also be possible to become the car owner earlier than agreed by making a lump-sum payment for the remainder of the loan.