Hire Purchase (HP) is a finance plan that allows you to spread the cost of the car by making monthly payments over an agreed term. You make higher monthly payments than with a Personal Contract Purchase (PCP) agreement as there is no final balloon repayment, instead, when you come to the end of the agreement and you’ve made all the repayments including any interest, you’ll own the car. •You will decide an initial deposit and term. •Your deposit is taken from the price of the car. •The remaining balance plus interest is paid in equal monthly repayments over the agreed term. •Once you’ve made all the payments including any interest, you will become the owner of the vehicle.

Personal Contract Hire (PCH) is a fixed cost rental agreement which is available for a period of 2-5 years on new vehicles only. You will select a new vehicle and decide your annual mileage allowance (minimum 5000 miles). You will have the option to include fixed cost maintenance and rescue recovery services. You will pay an initial rental equivalent to the cost of between 1 to 12 monthly rentals. The higher the initial rental, the lower the monthly rentals will be. You will pay regular monthly rentals over the agreed term. At the end of the contract, you will have the option to either return the vehicle or keep it for longer. If you want to keep it for longer, you can apply for a formal extension (subject to status and credit application). If you're not sure how long you might need it for, or if you don't arrange to return your vehicle by the contract end date, it will go into an informal extension. You will be unable to purchase the vehicle at any point, as there is no ownership option. When you return the vehicle, if you have not gone over your mileage allowance and have kept the vehicle in good condition, you will have nothing further to pay.