Representative Example: You could borrow £10,699 over 60 months with an initial payment of £495.89 (including £199 Admin Fee) followed by 58 monthly payments of £296.89 with a final payment of £495.89 (including optional £199 Option to Purchase Fee). Total amount repayable will be £19,012,40. 26.1% APR, annual interest rate (fixed) 13.3%.
The Admin Fee is a £199 fee that helps cover the costs of setting up your finance agreement. It covers things like preparing your agreement documents, carrying out credit and identity checks, and arranging payment to the broker. This fee is paid at the same time as your first payment, and it isn't refundable. It's separate from your deposit and from any other charges on your agreement.
The Optional Purchase Fee is a £199 fee you only pay if you decide to buy the car at the end of your finance agreement. You don't have to buy the car, that's entirely your choice. If you choose to hand the car back instead, you won't pay this fee. If you decide to keep the car, you'll need to pay the £199 Optional Purchase Fee, usually along with your final payment, to transfer legal ownership of the vehicle to you. This fee covers the cost of finalising your agreement and removing our interest in the vehicle. It's separate from your deposit and from any other charges on your agreement.
The amount shown is an illustration of a typical monthly payment based on the Representative APR. These figures are for guidance only; the actual payments and rate you're offered will depend on your individual circumstances and are not guaranteed. Please see below for details of how your first and final payments may be different.
Hire Purchase Car Finance With AutoMoney
Looking to buy a car and want to spread the cost? Hire purchase could be the answer. It’s a straightforward way to finance a car, especially if you’re looking to buying a used car. You pay for the vehicle in monthly instalments, and once all payments are made, including the final one, the car becomes yours.
With hire purchase, you agree to pay off the cost of the car in fixed monthly payments over a set term, usually 1 to 5 years.
You don’t need to pay the full amount upfront. Some people choose to put down a deposit (often around 10%), while others prefer a zero deposit option if the lender allows it.
You can apply directly with a lender or go through a car finance broker. Brokers can help match you with lenders based on your budget and financial situation, saving you time and helping you find better deals.
Once approved, the lender pays the dealer for the car, and you repay the lender in monthly instalments. You won’t fully own the car until you’ve made all payments, including the "option to purchase."
Most finance companies work with approved dealerships. You can either pick a car from one of their trusted dealers or, if you’ve found a car already, check whether it meets the lender’s requirements.
Approved dealers are important because they’ve been checked to make sure they treat customers fairly. This gives you extra confidence that you’re buying from a reliable source.
Before anything is agreed, your finance provider will send over all the paperwork, including full details of the loan, fees, and your rights. Always read the terms carefully and ask questions if you’re unsure about anything.
Many customers choose to pay a deposit, which reduces the amount left to repay and lowers your monthly payments. But if that’s not possible, some lenders, like AutoMoney Motor Finance, offer car finance with no deposit.
Your monthly repayments stay the same for the entire term, making it easier to budget. The full cost of the car is spread across these payments, plus interest and any agreed fees.
Some lenders let you make extra payments to reduce interest or finish the loan early. Just check if there are any fees for overpaying or settling early.
Missing payments could lead to extra charges and may affect your credit score. Since the car acts as security for the loan, the lender could take it back if you stop paying.
At the end of your agreement, you’ll make a final payment that includes the "option to purchase" fee. After that, the car is legally yours.
This fee is usually small and just covers the paperwork to transfer ownership into your name. Unlike some other finance options, like PCP, there’s no large balloon payment to make at the end.
Until you’ve made that last payment, the finance company still owns the car. So if you’re planning to modify the car, or sell it early, you’ll need to check with the lender first.
Here are some of the main reasons people choose this type of finance:
Just remember: borrowing over a longer term can reduce your monthly payments but may increase the total cost due to added interest.
Hire purchase is a great way to finance a second-hand car. Used cars tend to cost less than new ones, which means it could be a good option.
AutoMoney Motor Finance specialises in used car finance. Our network of trusted dealers across the UK gives you access to quality vehicles that meet your budget.
Plus, with options like no deposit car finance and same-day approval, we aim to make the process simple for our customers.
AutoMoney Motor Finance supports a wide range of customers, including those who may have been turned down elsewhere. We look at more than just your credit score.
We’re also a member of the Finance & Leasing Association (FLA), which means we follow their rules to treat our customers fairly.
Here’s how we make car finance simple:
