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What is Hire Purchase?

Hire Purchase is one of the finance products offered by Suzuki Finance to help spread the cost of buying a car. It’s a great choice if you want to own your car at the end of the agreement.

Suzuki Finance owns the vehicle for the duration of the finance agreement. You will become the owner of the vehicle after all the repayments including any interest has been paid.

How Hire Purchase works

You choose your deposit at the beginning of the agreement, and then pay equal monthly repayments with a fixed interest rate, over your chosen period. After you’ve made all the repayments including any interest you will become the owner of the vehicle.

You can:

  • Borrow any amount from £3,000 for new vehicles and from £2,000 on used
  • Repay over 1-5 years depending upon the age of your vehicle                              
  • Decide on the deposit you would like to pay (no deposit may be available, subject to status)

Our dealers will be able to talk you through the Hire Purchase options available to you, and will be able to answer any questions you might have.

Is Hire Purchase the right car finance deal for you?

Hire Purchase is ideal if you want to own your car outright at the end of your agreement.

Other benefits of Hire Purchase include:

  • Flexible deposit options
  • Fixed interest rate and monthly repayments (including any interest) over your chosen period (1-5 years)
  • Fixed monthly repayments to suit your budget
  • You won’t be restrained to a certain mileage
  • Choose any new or used car as long as the car is less than 14 years old at the end of the agreement

Hire Purchase considerations

Before you decide whether a Hire Purchase agreement is right for you, it’s worth remembering that:

  • You won’t own the car until you’ve made your final repayment, including any interest
  • You won’t be able to sell or modify your car over the length of the agreement
  • You bear more risk of depreciation than with PCP, which means if the vehicle’s value depreciates faster than expected, you will continue paying the fixed monthly repayments

A breakdown of our products

  Hire Purchase Personal Contract Purchase (PCP) Personal Contract Hire
Deposit Required Yes. Flexible. 0% may be available.  Yes. Flexible. 0% may be available.  Yes. 1 - 12 months initial rental.

Length of Agreement

From 1 -5 years From 2 - 4 years From 2 - 5 years
Fixed Payments Yes Yes Yes
Final lump sum repayment at agreement end N/A Yes N/A
Maximum permitted age of car at agreement end Typically 14 years Typically 7 years Typically 5 years
Ownership at agreement end  Yes Yes. If you pay the final lump sum payment. No ownership option available. You must arrange to return the vehicle.
Goods return option N/A Yes. Return conditions apply.  No ownership option available. You must arrange to return the vehicle.
Excess mileage charges  N/A Yes. If exercise goods return option and exceed mileage allowance.  Yes. If contracted mileage allowance exceeded.

Part exchange

NB. Subject to settling outstanding finance. New agreements subject to status.

Yes  Yes N/A

Voluntary termination rights

NB. Regulated agreements only

Yes   Yes   N/A
 

Fully comprehensive insurance required

Yes    Yes  Yes  
 

Ability to amend monthly payment due date

NB. Subject to loss of interest charge.

Yes. Once every 12 months.  Yes. Once over the lifetime of the agreement. Yes. Subject to conditions.

 

*Hire Purchase, PCP and Personal Contract Hire are subject to status and only available to UK residents aged 18 and over. Credit products are provided by Suzuki Finance, a trading style of Suzuki Financial Services Ltd, St William House, Tresillian Terrace, Cardiff CF10 5BH. Personal Contract Hire is provided by Lex Autolease Limited trading as Suzuki Contract Hire, Heathside Park, Heathside Park Road, Stockport SK3 0RB.

**Under our PCP product, you have the option at the end of the agreement to return the vehicle and not pay the deferred optional Final Payment. Providing the vehicle is in good condition and has not exceeded the maximum agreed mileage you will have nothing further to pay. If the vehicle has exceeded the maximum agreed mileage a charge for excess mileage will apply. Further information on what is considered good condition can be found at here.

Last updated on: 16th January 2020