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Hire Purchase (HP)
Buy a car with Hire Purchase car finance from Halifax. Pay a set amount each month and at the end of the agreement, the car’s all yours.
Log in to get a quoteHire purchase features and benefits
If you bank with Halifax, spread the cost of your new car with fixed monthly payments.
Why choose Halifax Hire Purchase car finance?
- Flexible repayment terms. Repay your Hire Purchase finance over 1 to 5 years with Halifax.
- No early repayment charges. Pay your HP car finance earlier than agreed, with no early repayment charges.
- Flexible deposit options. Choose if you want to pay a deposit.
- No final sum. There’s no need to pay a final lump sum to own the car at the end of your agreement.
We also lend using other terms, borrowing amounts and rates.
Paying a bigger deposit will lower your monthly payments. There are also other ways to lend. Compare your options to see what works for you.
How does HP car finance work?
HP agreement example
Here's an example of how this type of car finance might work:
Let’s say you want to buy a car for £30,000 with a £3,000 deposit over a 3-year term.
With a Hire Purchase agreement you'll pay the remaining value of £27,000 in monthly payments. This will include an amount of interest. At the end of the agreement, you own the car.
Can I end a HP agreement early?
Yes, if you’ve made at least half of your payments, you have a legal right to return the car and end a Hire Purchase contract early. This is called voluntary termination. You can also request an early settlement figure, which allows you to pay in full to end the agreement and hand back the car.
Let's break it down
To apply for HP car finance, you'll need:
- The registration of the car and the current and expected annual mileage. If you don’t know the registration of the new car, we’ll need the delivery date and full vehicle details.
- The name and location of the dealership.
- The total cost of the car including any deposit.
- Your finance information, including your income, mortgage or rent payments and day-to-day spending.
- Details of any existing car finance agreements.
You can get more support in our understanding car finance section.
Get a quote for Hire Purchase
Getting a quote takes minutes and doesn't affect your credit score. Your quote will be valid for 90 days, with no need to re-apply.
Let’s take a closer look
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We won't do a credit search when you apply for HP car finance. Instead, we'll look at your income and the existing financial commitments you may have. This helps us understand if you can afford the repayments. If you don’t make monthly repayments, you risk us repossessing the car.
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There are some restrictions on the type of cars you can buy with Hire Purchase finance. Usually this is based on the car’s make, model, age and mileage. To find out if it’s possible to take HP car finance out on your chosen car with Halifax, apply for a quote today.
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We don’t offer a part-exchange service. You might be able to part-exchange your car with the dealership. If they offer a part-exchange service, the final price for your new car will reflect this. We'll then pay the agreed amount to the dealership.
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We work with most car dealerships in the UK. You can search for a car dealership by location when you apply, and if you can't find your chosen one in the list, let us know. We can usually update this.
We don’t offer car finance for Cinch or Motorpoint.
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When you apply for a Hire Purchase agreement, you will be the registered keeper of the car. This means the car must be in your name.
If you’d like someone else to drive your car, they'll need to have a valid driving licence and be a named driver on your car insurance policy.
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We don’t offer a delivery service with our HP car finance agreements. You might be able to arrange a delivery with the dealership. To find out if this is an option speak to the dealership directly.
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You can arrange Hire Purchase agreements on new and used cars, to help you manage the cost with monthly payments and an optional deposit. Either can be a good option. Whether you choose a new or used car is up to you.
Find the right car finance
Take time to review our other car finance options. Researching other options can help you find the fit for you.
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