OF HIRE PURCHASE

www.glensidefinance.co.uk

PROS AND CONS

What is Hire Purchase?Hire Purchase (“HP”) is a popular type of credit

agreement typically used to purchase cars.

You agree to pay for the car over a period of time and you do not own the car until you make your final

payment.

Most of our customers have used Hire Purchase to purchase their cars. A deposit is usually required; we

typically look for 20-30% of the purchase price of the car as a deposit.

Advantages of Hire Purchase Hire Purchase gives those without the ability to pay for a car

outright to purchase a car The cost of the car is spread over a period of time and paid by

monthly instalments rather than a large up front investment Even though you have not paid for the car in full you still are

able to use it and drive it Can be a great option for businesses as you assist cash flow

rather than losing a large amount of capital You own the vehicle once your final instalment has been paid,

compared to leasing (renting) the vehicle No VAT to pay on monthly instalments (compared to a Lease) The interest rate is fixed throughout the period of the agreement

even if bank interest rates increase

Disadvantages of Hire Purchase The loan is secured against the vehicle: therefore if you don’t pay

the vehicle can be repossessed by the finance company. Non payment can also negatively affect your credit rating

The finance company are the legal owners of the vehicle: You do not own the vehicle until you pay the agreement off in full

As it’s not your car it’s not protected if you’re made bankrupt You pay more for the car as you are paying interest in addition to

the cost of the car. If you have bad credit you can expect to pay a higher rate of interest because lenders see you as high risk

Our promise Our speciality is providing car finance to people with poor

credit, defaults, CCJs or ex-bankrupts. We provide Hire Purchase for cars and Leasing for vans. We do not have any mileage restrictions on our Hire Purchase or Lease Agreements.

At Glenside Finance we promise to treat you as an individual and look at your application personally rather than using a computerised credit scoring system. We aim to work with our customers to provide car finance packages which are affordable and straightforward.

If you want to find out more about our options for poor credit car finance then call us on 01329 849434 to speak to one of our representatives today.

Bad Credit Car Finance Specialists

www.glensidefinance.co.uk

Bad Credit Car Finance Specialists

www.glensidefinance.co.uk