Rates from 8.9% APR  - 8.9% APR Representative
Hire Purchase

Hire Purchase



HP Car Finance

For even the most seasoned car lovers, we know that trying to finance your vehicle can be a stressful, time-consuming process. Navigating the world of car finance should not mean chasing quotes or dealing with huge amounts of paperwork, which is why we can handle as much — or as little — as you like. Whatever your plans for the road, we can step in with the right finance product for you.

When it comes to finding a Hire Purchase agreement to secure your dream car, Magnitude Finance is on hand to assist at every step of the journey. Our experienced service allows us to create specially tailored packages, complete with some of the most competitive rates available on the market.

No matter the make or model you’ve set your sights on, we can secure the right finance option for your next car. We’re true independents, working on behalf of our clients to ensure that they get the right finance product for their needs.

We know there’s no feeling quite like getting behind the wheel of a new car. It’s a feeling that our team has helped thousands of people achieve, combining years of expert knowledge with exclusive access to an extensive panel of lenders to create a bespoke finance package that perfectly suits the requirements of our customers.


Looking for a quote? Try our free online finance calculator here!

8.9% APR Representative. We are a credit broker, not a lender.

Hire Purchase

What Is Hire Purchase Finance?

Here at Magnitude Finance, we know the value of a straightforward deal. That’s why our Hire Purchase finance agreement is exactly that.

When it comes to financing vehicles, a Hire Purchase agreement is one of the simplest ways to secure finance for the car of your dreams. This method lets you pay for your car over a number of easy, fixed monthly payments, usually over a specified period between 2 and 5 years, with ownership passing to you at the end.

These monthly finance payments are fixed at the beginning of your Hire Purchase (HP) agreement term, alongside the interest rate you will be expected to pay. No surprises. After your initial deposit has been placed, these payments will continue over the course of the contractual term – and the car officially becomes yours once the final outstanding payment is completed.

People who are looking to further reduce their monthly payments can also choose to have a ‘final balloon payment’ – unsurprisingly, this product is known as Hire Purchase with a Balloon.

Much like its namesake, with a Hire Purchase plus Balloon plan, the finance company will retain ownership of the car until you pay the final balloon payment at the end of your agreement. You cannot sell or modify your vehicle before this payment is made.

Why Choose A Hire Purchase Deal?

As part of our unmatched car finance packages, Hire Purchase finance provides a simple and straightforward way of getting the keys to your dream vehicle.

With a range of flexible deposit options to choose from at the start of your agreement and fixed monthly finance repayments, a Hire Purchase plan with Magnitude Finance is one of the best options for those who wish to keep their car once their contract is over. 

You can customise your agreement length to suit your own financial circumstances, opting to make monthly repayments in larger chunks if you are keen to get those keys sooner rather than later.

However, you choose to create your package, getting a Hire Purchase plan is one of the most stress-free ways to secure your personal car loan and drive away happily.

Unlike a Personal Contract Purchase financial arrangement, you are not bound by annual mileage restrictions.

Any questions? Get in touch with our concierge service today by calling 01943 660703 or message us using the Live Chat or WhatsApp facilities to find out how Magnitude Finance can deliver exclusive, competitive finance rates – with none of the hassle.

8.9% APR Representative. We are a credit broker, not a lender.

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Hire Purchase
Hire Purchase

How Is A Hire Purchase Deal Structured With Magnitude Finance?

With Magnitude Finance, we’ll always take the time to understand your situation. When you first come to us for a no-obligation chat — whether that’s for a query or quote — our team will always give you the best advice as to your next steps.

Once you’ve decided to proceed with a Hire Purchase plan, we will get to work sourcing the best deals from our panel of esteemed lenders, creating a bespoke car finance package that suits your needs.

For those looking to purchase their vehicle through our accurate finance solutions, we will structure your deal to suit your unique circumstances. Much like a mortgage, finance will be secured on your chosen car – so it’s important to remember that you are not the owner until that last payment is made at the end of the agreement period.

Hire Purchase first requires an initial deposit which you pay upfront. This is usually around 10-40% of the car’s purchase price, the rest is paid in monthly instalments. The value for each of these repayments will be made clear to you at the start of your agreement, so you always know exactly how much you need in your monthly budget.

Although Hire Purchase offers great flexibility and budgeting potential, we ask our clients to be mindful that it can results in higher monthly payments when compared with other finance options.

Should you have any questions at any point of your finance deal – whether that’s regarding the outstanding amount on your vehicle or if you’d like to discuss other options, such as ending your agreement early — your dedicated financial account manager will be able to help.

Use our simple enquiry form, pick up the phone or arrange a call-back for a time that suits you. When it comes to your finances, we’ll always supply you with accurate numbers, no-nonsense advice, and clear solutions.


What Are Some Disadvantages Of Hire Purchase (HP)?

As with any Hire Purchase agreement created by a finance provider, we ask you to remember that you are legally bound to the terms as outlined within the package. Before we submit to any lenders, we do take multiple factors into account such as a credit check as standard within our industry. This is something that only you can see when you perform a search, but a full credit reference search will be taken by our credit analyst team once we reach the formal proposal stage with the finance house.

Your credit may be at risk, so you must think about whether you’ll still be able to keep up with repayments should your circumstances change. Until the last instalment on your Hire purchase agreement is paid in full, the vehicle is still under the ownership of the dealer, and missing these charges may have further repercussions on your credit rating. It can also impact your credit score and ability to gain credit in the future.

Unless you have paid a third of the total amount payable, you are also liable to have your vehicle repossessed in the event of a default. This can occur without a court order.

8.9% APR Representative. We are a credit broker, not a lender.

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Hire Purchase
Hire Purchase

Who Would Suit This Type Of Car Finance Package?

For clients looking for a simple and straightforward way to secure funding for their next vehicle, a Hire Purchase finance package might be the perfect solution. 

With the option of adding a balloon payment to the end of your agreement, you can further reduce the amount you pay each month — so you can continue saving for the things that matter to you while continuing to contribute to the newest addition to the garage.

When you take out a finance deal with us, we work hard to get everything sorted as quickly and smoothly as possible. Whilst we can complete a deal in less than 24 hours, it usually takes us a few days to ensure that everything is in order and for funds to be released, using industry-leading technology where possible to give our customers ultimate peace of mind.

This includes our state-of-the-art Hire Purchase Car Finance Calculator. At Magnitude Finance, we have over 35 years of experience in handling all aspects of car finance — so we know that sourcing the figures you need can take up plenty of time and energy.

Our dedication to customer experience led us to develop our innovative Car Finance Calculator that can produce no-obligation estimations in just a few clicks.

We ask our clients to note that figures provided by the calculator are estimates and not exact quotations. As it’s designed to cover the sheer variety of our customers, their dream vehicles, and multiple credit backgrounds, it is designed to give you an idea of the cost but cannot take into account your own unique circumstances or monthly income.

If you feel Hire Purchase is the right product for you, try our free online finance calculator for a quote in just a few clicks!

8.9% APR Representative. We are a credit broker, not a lender.

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