Standard Hire Purchase Agreement

This is also known as an HP Agreement. It is an agreement that you as the buyer will have with a bank or a lender whereby the balance owed on the vehicle will be paid off in regular monthly instalments over an agreed period. Sometimes a deposit is required by the bank or lender for this type of loan agreement to help reduce your monthly repayments.

• After paying all the instalments over the agreed period, you will own the vehicle
• No restrictions on the use of the vehicle – including unlimited mileage
• Lower interest rates compared to other types of vehicle finance agreements
• Fixed monthly instalments over a set period
• Early settlement allowed should you want to pay off the outstanding balance of the loan before the end of the agreed period
• Most popular way of buying a vehicle

• Monthly instalments could be higher compared to other finance options if taken over a shorter payment period
• Regular monthly payments are required. Should you fail to pay your instalment each month you vehicle may be repossessed
• The vehicle is owned by the bank or lender until you have paid all the outstanding instalments. This means that you cannot sell the vehicle until the balance is paid in full