What is HP?
Hire Purchase (HP) is a type of car finance that allows you to make monthly payments to pay off the cost of a car instead of having to pay the upfront price in one go.
Unlike Personal Contract Purchase (PCP) there is no final payment at the end of the contract, you own the car outright. The cost of the car is divided across a deposit and a series of fixed monthly payments, a typical HP agreement is over three to five years. As soon as you've made the final payment, you automatically own the car.