Hire purchase or conditional sale

Hire Purchase is where a vehicle is sold to the customer subject to certain conditions which include – all the payments are made (on time), the vehicle is comprehensively insured at all times and the vehicle is kept in good condition.

Benefits to this option are the fact that it is quick and easy to arrange, normally there are low deposits – usually from 10%, the terms are flexible from 12 – 60 months and there are competitive fixed interest rates available.

Drawbacks are that you do not own the car until the final payment is made and this can potentially be more expensive for short term loans.