Deposit
What you pay at the start, including any part-exchange equity.
How does HP car finance work?
Hire Purchase (HP) spreads the amount you finance over a fixed term. You make a deposit, then monthly payments. You own the vehicle once all payments are made. Figures you see before a full application are illustrations.
Get a personalised finance profile with no impact on your credit score.
How HP works
You agree a deposit and a term. The remaining amount is financed and repaid in monthly instalments.
There is no PCP-style annual mileage choice and no optional balloon payment on HP. Total payable is shown alongside the monthly figure on Oakwood illustrations.
How Oakwood can help
Check eligibility, then browse cars with monthly figures. On a vehicle, build a deal to try HP against PCP where both are available.
The calculator and deal builder use the same finance rules. They do not replace a regulated application.
Eligibility then application
Eligibility is a soft search for a personalised finance profile. It is not “apply now”.
Your final HP terms are confirmed during the application on a specific vehicle.
The moving parts of HP
Monthly payments
Estimated instalments over the term. Personalised if you have a finance profile; otherwise a representative illustration.
Term
How many months the agreement lasts. You choose from the options shown. We never extend it automatically.
Ownership
You own the vehicle once all payments under the agreement are made.
Total payable
The overall illustrated cost, shown with the monthly figure so you can compare honestly.
HP and PCP compared
Neither product is universally better. Use this as a guide, then compare both on a vehicle.
Monthly payment
- HP
- The amount financed is spread across the term.
- PCP
- Often lower because an optional final payment is held back until the end.
Final payment
- HP
- There is no optional balloon payment on HP.
- PCP
- An optional final payment is usually due at the end of the agreement.
Mileage
- HP
- HP does not use a PCP-style annual mileage choice.
- PCP
- Annual mileage is part of a PCP agreement and can change the illustration.
Ownership
- HP
- You own the vehicle once all payments are made.
- PCP
- What you can do at the end is confirmed with the finance provider during application.
Total payable
- HP
- Shown with the monthly figure so you can see the overall cost of the illustration.
- PCP
- Includes monthly payments, deposit and any optional final payment shown on the illustration.
Frequently asked questions
Do I own the car with HP?
You own the vehicle once all payments under the Hire Purchase agreement are made. Until then you are hiring the vehicle with an option to own it at the end of those payments.
Does HP have a mileage limit?
HP on Oakwood does not use the annual mileage selector that PCP uses. Mileage still matters for the vehicle itself, just not as a PCP contract mile limit on this site.
Is HP cheaper than PCP?
Not universally. PCP often shows a lower monthly illustration because an optional final payment is held back. HP may cost more per month and has no balloon. Compare both on a vehicle rather than assuming one is better.
Check my eligibility
Get a personalised finance profile with no impact on your credit score.