HP
Hire Purchase is the simplest form of car finance: you pay a deposit (often around 10%) and then fixed monthly instalments, and the car is yours once the final payment clears. Unlike PCP there is no large final “balloon” payment and no mileage limits — but monthly payments are higher because you’re paying off the whole car. HP suits buyers who definitely want to own the car at the end.
Example
A £15,000 used car on HP over 4 years might cost £1,500 down then around £320 a month, with ownership transferring on the last payment.