Hire Purchase (HP)
HP is a car financing option where you’ll own the car once you’ve made the final payment. Read on as we explore HP car finance in more detail.
Features and benefits
HP car finance could be a good way to get behind the wheel of a new or used car, where at the end, you’ll own it outright.
What do I need to apply for Hire Purchase?
Let's break it down
Get a quote
Get a HP car finance quote to see what you could borrow. It’ll only take a couple of minutes and won’t affect your credit score.
What you need to know about Lloyds Hire Purchase
Let’s look at the details
-
Yes. You can get second hand cars on Hire Purchase. HP could help you finance a new or a used car.
HP car finance is secured against the car. So, if you don’t keep up with payments, you could lose the car.
-
Yes. You could return the car and end the agreement if you’ve made at least half of your payments. This is known as voluntary termination.
You’ll need to let us know that you’re returning the car and ending the agreement. Keep in mind you might face charges for repaying a HP agreement early.
-
No. Lloyds do not offer part exchange for car finance. You might be able to arrange a part exchange with the dealership.
You might also be able to part exchange your car before the end of the agreement with PCP car finance.
-
Yes, you can still apply for HP with a poor credit rating. Sometimes, if you cannot apply for a loan you may still be able to apply for Online Car Finance. Check with a quick quote which won’t affect your credit score.
Your debt is secured against your car. If you can’t make the repayments, you risk your car being repossessed.
You may also like
Car finance help and guidance
Discover a range of handy car finance guides, from our car buyer’s guide to common car finance FAQs. See how Lloyds could help on your car finance journey.
Important legal information