HP Car Finance
Straightforward HP Car Finance for Drivers Across the UK
Hire Purchase (HP) is one of the simplest and most reliable ways to finance a car. With fixed monthly payments and full ownership at the end of the agreement, HP is ideal for drivers who want a clear and predictable route to owning their vehicle outright.
At carloans 365, we make HP car finance easy to understand and easy to arrange. Working with a panel of trusted UK lenders, we help customers at all stages of life, including those rebuilding their credit profile, to find affordable, responsible finance tailored to their budget.
What Is HP Car Finance?
Hire Purchase (HP) is a type of car finance where you repay the full value of the vehicle over an agreed term, usually between 24 and 60 months. Once you’ve made your final payment, the car becomes yours automatically.
There’s no large optional payment at the end, no mileage restrictions, and no uncertainty, HP is one of the most straightforward paths to car ownership.
With HP, your monthly payments usually cover:
- The full value of the car
- Interest set by the lender
- Any deposit you choose to put down (if applicable)
Because you’re paying off the full cost of the vehicle, the monthly payments are often higher than PCP, but the deal is simpler, clearer, and perfect for drivers who want long-term ownership.
Why Choose HP Finance with carloans 365?
Full Ownership at the End
Once your final payment is made, the car is yours. No final lump sum, no conditions, just simple, guaranteed ownership.
Clear, Predictable Monthly Payments
Your repayments stay the same throughout the agreement, making it easy to budget confidently.
No Mileage Limits
Unlike PCP, HP agreements do not restrict your mileage, making it ideal for commuters, families, or drivers with long daily journeys.
Suitable for All Credit Profiles
We work with a broad panel of lenders who consider a range of circumstances. Even if your credit score isn’t where you’d like it to be, we’ll aim to help you find an affordable, responsible option.
Choose Your Car from Any Reputable Dealer
Once approved, you’re free to pick your car from thousands of trusted dealerships across the UK.
Quick and Simple Online Application
Apply in minutes, with an initial soft credit check that won’t affect your credit score.
How HP Car Finance Works
1. Apply Online
Fill in our short online form. We run a soft search to assess your eligibility without affecting your credit file.
2. Get Matched to a Suitable Lender
We compare options from our panel of trusted UK lenders to find a deal that suits your circumstances.
3. Choose Your Car
Select a car you love from any reputable dealership in the UK.
4. Sign and Drive Away
Your lender pays the dealer directly, and you begin your monthly repayments. When you reach the end of your term, the car is yours.
Is HP Right for You?
Hire Purchase may be the best choice if you:
- Want a simple agreement with no surprises
- Prefer guaranteed ownership of the car
- Drive higher annual mileage
- Don’t want to deal with mileage limits or end-of-term inspections
- Want a finance option that may be more accessible if you have developing or poor credit
- Prefer a straightforward repayment plan with no balloon payment
If you value certainty and long-term ownership, HP is one of the most transparent finance routes available.
HP vs PCP – At a Glance
| Feature | HP | PCP |
|---|---|---|
| Ownership | Yes, automatic | Optional |
| Monthly Payments | Higher | Lower |
| Mileage Limits | None | Yes |
| End-of-Term Payment | None | Optional final payment |
| Best For | Long-term ownership | Flexibility and lower monthly payments |
HP is typically chosen by drivers who want to keep their cars for several years, while PCP suits those who prefer to change vehicles more frequently.
Can I Get HP Car Finance with Poor Credit?
While lenders assess every application individually, HP can sometimes be easier to obtain than PCP for customers with weaker credit, as the loan is secured against the vehicle.
carloans 365 works with several lenders who specialise in supporting customers with limited or developing credit histories. Approval isn’t guaranteed, but many applicants are surprised by the options available to them.
We always focus on responsible, affordable lending, ensuring the finance you receive is suitable for your circumstances.
Start Your HP Car Finance Application Today
If you want a simple, transparent route to car ownership, HP finance could be the perfect choice. At carloans 365, we’re here to make the process as smooth as possible, and to help you find a finance option that fits your lifestyle and budget.
Apply online in minutes — with no impact on your credit score from our initial checks.
Frequently Asked Questions About HP Finance
Do I need a deposit for HP?
Not necessarily. Some lenders offer no-deposit HP finance, depending on your affordability and credit checks.
Does HP affect my credit score?
Your initial application does not. A hard search will only be carried out once you proceed with a lender.
Can I pay off my HP agreement early?
Yes. You can request a settlement figure at any time and repay your agreement early if you choose.
Are HP payments fixed?
Yes. Payments remain the same throughout your agreement, making it easy to plan your monthly budget.
Is HP more expensive than PCP?
Monthly payments are usually higher, as you’re paying off the full value of the car, but there’s no balloon payment at the end, and you become the legal owner once the agreement is complete.
How much can you afford to
spend on a car?
How much can you afford to
spend on a car?
REP APR: 21.4% We act as a broker, not a lender.
Representative Example:
Borrowing £7,500 at a representative APR of 21.4%, annual interest rate (fixed) 21.36%, 47 monthly payments of £196.75 followed by 1 payment of £206.75, total cost of credit is £4,315, total amount payable is £11,815.
carloans 365 is a trading name of HT Finance Ltd. Company Number 11481948 registered address: carloans 365, Floor 2, Jackson House, Sibson Street, Sale, M33 7RR. HT Finance Ltd is authorised and regulated by the Financial Conduct Authority, under reference No. 821383 All finance is subject to status, terms and conditions apply. We work with a specific panel of lenders to try to obtain you an approval. We receive a commission for introducing you to parties with whom we work with. This commission is a fixed payment or percentage but can vary by partner. This does not impact the rate you are provided, full information on request. We do not charge a fee for our services.
Latest Articles
Frequently Asked
Questions
All of the lenders we work with offer finance options that require no deposit. Deposits may sometimes be requested. If they are, your account manager will let you and explain the reasons why. Should a deposit not be an option we can always look at other car options.
Making an initial enquiry will not leave a hard check on you credit profile. The lender(s) we submit your application to will conduct a ‘soft search’ in order to pre-approve your application. These searches will show on your credit profile but are only visible to you. A ‘hard search’ will only be carried out should you wish to proceed with any quotation provided to show the live credit agreement you have taken out.
Our open and honest approach means that your account manager will offer you the best pre-approval rate we manage to obtain for you from the outset. We will not offer your application to the highest bidder and always have your best interests at heart throughout our process.
You can purchase a car from any dealer we class as ‘reputable’. We will conduct any necessary checks on the dealer to make sure they are up to our standards giving you confidence in the vehicle you’re purchasing.
We are currently able to offer Hire Purchase agreements, most known as HP. Hire Purchase is a loan attached to the vehicle, designed so that you own 100% of your vehicle at the end of your contracted payments (usually subject to a small option to purchase fee). The balance of the loan is paid over the pre-agreed contract length, the most common term for such loans is between 48 & 60 months. We also have other products available such as conditional sale, lease purchase and personal contract purchase. Your dedicated Account Manager will go through all options available to you. (Subject to status)
We work with a panel of lenders who could offer finance for all credit ratings no matter if your credit is bad! Some of which specialise in securing finance for bad credit. These loans can also work as a great way to boost your credit worthiness for when you next apply for finance. Click ‘Get a quote’ and let us work to secure the best finance offer for you.
Of course, once we have found the vehicle you wish to proceed with, we will negotiate a figure for you part-exchange with the dealer you are purchasing your new car from. You can then simply drop your old car off and drive away in your new one.
If your application is straight forward and you have already seen a car you wish to purchase, then you could collect your vehicle the same day (depending on the lender). If you are in a hurry to get in your new car, please let your account manager know and we will do our best to ‘FastTrack’ your application.
Not answered your question? Get in touch on 0161 410 3365!
