Vauxhall Hire Purchase (HP)
Vauxhall Hire Purchase (HP) is the traditional method of financing the purchase of a motor vehicle because unlike a PCP agreement there is no final payment to make, so once all your monthly instalments are paid, the full cost of the purchase will be covered. HP is not be as flexible as a Personal Contract Purchase, but the main difference is that it does guarantee immediate ownership at the end of the finance agreement.
A Hire Purchase agreement spreads the purchase cost over an agreed term after you pay an initial deposit, and after you’ve made all the monthly payments the vehicle is yours!
This type of finance option is ideal if you want to own the vehicle outright at the end of the loan agreement and want to have a fixed monthly payment, as your repayments will be fixed for the duration of your agreement. You are able to select the term of the HP agreement, usually from 1 to 5 years and it can be used for the purchase of a new or used vehicle. There is also the option of paying off the full agreement early in order to get a rebate on future interest charges.
Points to Note: You do have protection under the Consumer Credit Act Termination Rights and the Consumer Rights Act, but you have no protection against depreciation as a result of an unexpected fall in the value of the vehicle. Furthermore, your vehicle is at risk of repossession if you do not make the contractual repayments.
Other terms & conditions will also apply.