Vehicle finance discretionary commission complaints
The Financial Conduct Authority says some customers may have been charged too much on their vehicle finance before 2021.
Get support with commission complaintsHire Purchase (HP)
For Limited companies looking to own the vehicle in the long run.
How Hire Purchase works
Customers put down a deposit and borrow the rest of the cost of the vehicle. They pay the remaining amount back monthly over the term of the agreement. At the end of the agreement, your customer can pay the Option to Purchase fee to own the vehicle, or hand it back.
Available for cars, motorcycles and vans.
Pay the deposit
Your customer puts down a deposit of around 10% of the vehicle price and pays the remaining cost of the vehicle over the term of the agreement.
Fixed repayments
Monthly repayments are fixed during the agreement and spread equally throughout the term, including interest. The agreement is up to five years (60 months).
Optional balloon payment
Your customer has the option to make a balloon repayment at the end of the agreed term. This can help to reduce their monthly repayment amount.
Choose to own or return the vehicle
After your customer has made the final payment, they can pay the ‘option to purchase’ (OTP) fee and become the legal owner of the vehicle, or hand the vehicle back to us and walk away.
Finance is secured against the vehicle
If your customer is unable to keep up with their payments, we may repossess the vehicle.
See how it works
An introduction to Hire Purchase (HP), why your customers might consider it as a finance option, and things to think about.
Our finance products
We offer a range of finance products depending on your customer’s budget and vehicle needs.
- Fixed monthly repayments
- Early repayment options
- Own the vehicle at the end of the agreement
- No option to exchange the vehicle at the end of the agreement
- No excess mileage charges
- No vehicle condition charges (fair wear and tear)
Hire Purchase (HP)
For Limited companies looking to own the vehicle in the long run.
Current product- Fixed monthly repayments
- Early repayment options
- Option to own the vehicle at the end of the agreement
- No option to exchange the vehicle at the end of the agreement
- No excess mileage charges
- No vehicle condition charges (fair wear and tear)
Personal Contract Purchase (PCP)
If your customer wants options at the end of their agreement.
View product- Fixed monthly repayments
- Early repayment options
- Option to own the vehicle at the end of the agreement
- Option to exchange the vehicle at the end of the agreement
- Excess mileage charges
- Vehicle condition charges (Fair wear and tear)