Best Cars to Buy on HP (Hire Purchase)

The best cars to buy on HP (Hire Purchase) make financial sense at the same time as meeting your needs during the term of your contract and beyond. HP finance is a popular type of car finance that can help you buy the car you want by splitting its cost into affordable, fixed monthly payments. 

Here, we’ve put together a list of our favourite cars to buy on hire purchase. 

The cars featured in this guide:

• Mini Cooper
• Toyota Yaris
• Skoda Superb Estate
• MG ZS EV
• Tesla Model Y
• Nissan Qashqai  
• Kia Picanto

All of the cars we’ve chosen are good to buy using an HP agreement because they make financial and practical sense. Each one is especially good value compared with similar cars, giving you either more space, more equipment, a better drive or lower running costs. And in many cases, all of the above!

We’ve also been careful to choose cars that have a good reputation for reliability. Whatever the cost and duration of your HP agreement is, you don’t want the extra cost and inconvenience of any repairs.

The best small cars to buy on HP: Mini Cooper, Toyota Yaris

Low ownership costs are central to the appeal of most small cars, and choosing to buy one via hire purchase can make them even more affordable. We’ve selected the Mini Cooper and Toyota Yaris as our best small cars to buy on HP. The Mini offers lots of fun, style and quality for your money, while the Toyota Yaris is a hybrid that gives great fuel economy and has an exceptionally long warranty.  

Mini Hatch

The Mini Hatch (known as the Mini Cooper after an update in 2024) has become a modern icon yet it continues to evolve and is more stylish, more fun to drive and more desirable than ever. It’s a great choice if you’re buying via HP because it offers a higher-quality feel than many cars for the price and a good reputation for reliability.

The post-2024 Mini moves the game forward with a sleeker exterior and an interior that’s really eye-catching thanks to its minimalist design, fabric-covered dashboard and large circular touchscreen. As before, practicality isn’t the Mini’s forte, but there’s plenty of space in the front seats. And if you regularly carry rear-seat passengers and want a bit of extra boot space, you can opt for the roomier five-door model rather than the standard three-door version. 

Toyota Yaris

If you want a small car that provides a frictionless ownership experience and low costs, buying a Toyota Yaris on HP could be a smart choice. Although it costs more than some small cars, the latest Yaris could be an affordable option via hire purchase, and because it’s been on sale since 2020, there are lots of used examples around.

Where the Yaris really stands out is its incredibly fuel-efficient hybrid system. The official average is nearly 70mpg, and short, low-speed journeys are possible using electric power alone. Insurance costs should be reasonable, and few brands can match Toyota’s reputation for reliability. Even fewer can match the warranty it provides, with coverage for up to 10 years or 100,000 miles as long as you have it serviced at a Toyota dealership each year.

Best family car to buy on HP: Skoda Superb Estate

If you’re looking for maximum practicality per pound, it’s hard to think of a car that beats the Skoda Superb Estate. No estate car has more boot space, and to get this much in an SUV of a similar age, you’re likely to pay much higher monthly HP payments. 

There’s more to the Superb than just its vast load space. Of course, it’s also a relaxing car to travel in, thanks to its smooth ride and quiet engines. There’s copious rear-seat legroom, too, all of which helps to make family trips, however long, as comfortable and peaceful as possible. There are lots of different versions to choose from, so whether you want a low-cost petrol model, a plug-in hybrid or an automatic version with four-wheel drive, the Superb has you covered. 

The best electric cars to buy on HP: MG ZS EV, Tesla Model Y 

The best electric cars to buy on HP give you a good battery range for a sensible monthly cost, and our top picks are the MG ZS EV and Tesla Model Y. The MG is a remarkable value for money, offering the practicality of a mid-size SUV for the same cost as some city cars. The Tesla Model Y is loaded with features, spacious and has a battery range that few rival cars can match. 

MG ZS EV

If you’d love an electric SUV but aren’t sure whether you can afford one, the MG ZS EV might just tip the balance, especially if you buy one on a HP loan. Prices for the ZS EV make it look cheap compared with many petrol-powered hatchbacks, let alone electric SUVs. So a modest monthly payment could be enough to get you what is a modern, practical SUV with a roomy interior, decent boot and a solid, user-friendly interior. 

Maximum battery range for later models is 273 miles, while the earliest, cheapest ZS EVs have a range of 163 miles. All versions give good performance and make great family cars thanks to their smooth, quiet ride. Warranty cover is a generous seven years or 80,000 miles, and every version is well-equipped. 

Tesla Model Y

The Tesla Model Y is at the cutting edge of EV technology, yet it’s a surprisingly affordable option if you buy one on HP. It’s been on sale since 2022 and was the UK’s best-selling electric car in 2024, so there are lots to choose from and no supply-and-demand issues to bump prices up. While the Model Y’s minimalist interior and rapid performance grab the headlines, it also has outstanding battery range, with the latest versions capable of almost 400 miles on a full charge. The Model Y will accept a faster charging speed than many EVs, too, while another plus point is access to the Tesla Supercharger network of rapid, reliable chargers. 

A standard panoramic glass roof enhances the spacious feel inside, while a huge boot and a ‘frunk’ under the bonnet provide plenty of load space. There are no ‘trim levels’ for the Model Y because every version comes fully loaded, with standard features including keyless entry, an electrically powered boot lid, artificial leather upholstery and a heated steering wheel.

The best SUV to buy on HP: Nissan Qashqai

Incredibly, the Nissan Qashqai has been a fixture in the top 10 UK new car sales chart for more than twenty years, and one of the main reasons for that is the excellent value it represents if you buy it on finance. The current Qashqai (introduced in 2021) is the best yet, representing a real upgrade on the previous model thanks to its extra practicality and high-tech features. 

And, as ever, the Qashqai makes a lot of sense as a family car. There’s loads of legroom and headroom inside, a decent boot and back doors that open super-wide, so it’s easy to get people or child seats in and out. You also get a smooth ride, and although it’s spacious, the Qashqai is compact enough to fit easily into most parking spaces. Many versions come with not only a reversing camera, but also a 360-degree camera system that gives you a bird's-eye view of what’s around the car on the central display screen. There are petrol and hybrid models to choose from, all giving good fuel economy and reasonable running costs.  

The best first car to buy on HP: Kia Picanto 

If you want a brilliant first car that’s affordable but has the latest features, buying a Kia Picanto on HP could well be the answer. Introduced in 2017 and given a bold makeover in 2024, the Picanto is small but mighty and gives you the kind of driving experience, quality and tech you generally associate with larger cars. Every new Picanto comes with rear parking sensors, a reversing camera and sat-nav, for example, and higher-spec models have LED headlights, a wireless phone charger, heated front seats and a heated steering wheel. 

Interior space is good for something so small, and the Picanto has a larger boot than most other city cars. It looks and feels a bit classier than many rival cars inside, too, with a smart design and good-quality materials. Low insurance group ratings make the Picanto affordable for younger drivers to insure, and even if you buy a used car, you’re still likely to benefit from Kia’s incredible seven-year/100,000-mile warranty. 

HP car finance examples: how much will it cost?

The cost of buying a car on HP varies depending on factors such as your credit profile, the lender you use and the type of car you’re buying. Carmoola’s car finance calculator is a useful way to find out how much your monthly payments could look like on HP finance.

However, here are two representative examples (taken from AutoTrader in Jul 2025) that break down the kind of figures you can expect to pay.

1. Small car – Mini Hatch

Price: £9,998
Deposit: 1,000
Term: 48 months
48 monthly payments of: £225.95
Total amount payable: £11,846.60
Fixed interest rate: 5.13%
Representative APR: 9.9%
Completion fee: £1

2. Electric car – Tesla Model Y

Price: £24,998
Deposit: 2,500
Term: 48 months
48 monthly payments of: £564.94
Total amount payable: £29,618.12
Fixed interest rate: 5.13%
Representative APR: 9.9%
Completion fee: £1

Common questions about buying a car on HP

Is buying a car on HP a good idea?

Buying a car on HP can be a good idea if it fits your budget and circumstances. A major part of the appeal of HP is that it lets you spread the cost of your car over a longer period, giving you fixed monthly payments that you can budget for. Most HP agreements are between one and five years in length, and there’s usually an initial deposit of 10-20% of the car’s cost to pay. 

At the end of the agreement, there’s generally a nominal option-to-purchase fee (also known as a completion fee) to pay, and you then own the car outright. Although the lender owns the car until you’ve made all your payments, there’s no mileage limit during an HP agreement, as there is with PCP, the other most popular form of car finance. 

On the downside, monthly payments for an HP agreement are usually higher than with a PCP. That’s because you’re paying off the total value of the car, rather than just what it’s expected to lose in depreciation over the course of your agreement. In terms of the amount you pay in total, however, HP could end up costing you less overall than if you decide to pay the ‘balloon payment’ with a PCP to keep the car. 

What happens at the end of an HP agreement?

At the end of an HP agreement, you become the owner of the car, although there’s usually a (very) small option-to-purchase fee to pay first. At Carmoola, this fee is just £1. Once this fee has been paid, the car is yours to do with as you wish. You may want to keep it, or you may choose to sell it and get a different car.

Can you pay off HP early?

It is possible to end an HP agreement early, although it may not make financial sense to do so. HP agreements generally last between one and five years, although most last for three or four years. 

There’s an initial ‘cooling off’ period of 14 days, where you can cancel the agreement with a minimum of fuss. Beyond that, though, an HP agreement is legally binding, and there may be additional termination fees to pay if you want to end the agreement.