How To Get The Best Hire Purchase Deal For Your Next Car

If you’re looking to save money on your car purchase, it’s crucial to look around for the best Hire Purchase deals before signing any car finance agreement. But how do you do this exactly? 🤔 There are actually a number of things you can do, and we’re here to offer some tips! Let’s get started with the first one!

Prepare to Pay a Bigger Deposit

For Hire Purchase car finance, you typically have to put down a deposit first. This is an initial lump sum payment that you make at the start of your car finance agreement. So, how exactly does paying a bigger deposit to allow you to save money? A substantial deposit means you’re going to borrow less money from the car finance company, so your monthly instalments will be more affordable and you’ll pay less interest in the long run. 

Remember that with HP car finance, the payments you make throughout the course of your agreement cover the full cost of the car, so expect high monthly instalments than if you were going for a PCP deal You can make the monthly repayment amount more budget-friendly by putting down a bigger deposit or by extending the period or term of the loan.  Most car finance companies require at least 10% of the value of the vehicle, although you can also get zero-deposit deals.  But if you can afford more than that, then go for it, a larger deposit is definitely going to save you money! 

When the lender sees that you’re willing to pay a huge deposit, they’re more likely to approve your car finance application because your loan amount won’t be so big. Also, you’ll increase your chances of being offered a better annual percentage rate or APR. A lower APR means a smaller interest will be applied to your loan. When looking for the best Hire Purchase deals for cars in the UK, always find the ones with the lowest APRs. 

Consider Getting a Used Car

For most of us, we prefer getting a brand-new car because of its pristine quality. Sure, nothing beats the feeling of being the first owner of a car. However, is it really worth spending all those thousands of pounds just to get this feeling? There are many second-hand vehicles in the market that are just as great and are nearly new, plus they won’t be as expensive as a brand-new car. 

With a used car, the cost of financing will be much cheaper. Your monthly instalments will be all the more affordable, and you won’t have to make sacrifices in your lifestyle just to make sure you can keep up with the payments. Another great thing about second-hand cars is that many of them come with upgrades and awesome features. If you were to get those add-on features on a brand-new car, it would surely and easily raise its price. 

A lot of second-hand cars are only one to three years old, but they’re already much cheaper than their brand-new counterparts. Remember that cars start to lose their value immediately once they leave the dealership Consider getting an ex-demonstrator car because those have only been used in the showrooms and for test driving so the mileage is sure to be low and it’s almost as good as new. 

Part-exchange Your Current Car

Part-exchanging your old car is a great way to save your cash when paying a deposit on the new car. Through this process, you don’t have to sell your old car yourself. Selling your car as a private seller takes time, and you might not be able to find the right buyer with the right budget immediately. You can skip this altogether and part-exchange your car at your preferred dealership. Of course, the amount you’ll get from your old car won’t be as high as when you sell it yourself but think of the convenience this will give you. 

With your old car, it’s possible that you won’t have to put down any cash for the deposit on the new one you want, given that you’ve kept your vehicle in great condition. And even if you still have to pay part of the deposit, you’re saving time, money, and effort by part-exchanging your car. You may also choose to part-exchange your vehicle and still pay a big deposit. This will pull down the amount you have to pay for the monthly instalments. 

Improve Your Credit Score

Your credit history and credit score are important factors that car finance companies consider when deciding if they’ll approve your loan. Higher credit scores usually get lower annual percentage rates. It’s because lenders perceive you as a good payer who won’t miss payments or default on your loan. The opposite goes for those with poor credit scores because car finance companies see them as high-risk borrowers. So, before you apply for car finance, see to it that you have a strong credit score

Compare APRs of Hire Purchase Deals

Many car finance companies would claim that they have the lowest interest rates. However, it’s not enough to just check the headline interest rates they offer. Instead, look at what their representative annual percentage rates are. The APR includes the interest rate as well as other fees and charges. This figure will give you a better sense of how much financing a car will cost. 

The APR that will be applied to your personal car finance agreement will depend heavily on your credit score and other factors that the lender will consider. So, to make sure you get the best deals for Hire Purchase, boost your credit score and see to it that you’ve settled previous debts and loans before you apply for another finance product. Usually, if you have a high credit score, the lender is more willing to offer you a lower APR. So it’s worth improving your credit score first to increase your chances of getting the best HP car finance deals. 


Getting the best hire purchase deals on your next car doesn’t have to be hard. You can compare deals using your smartphone! There are so many comparison websites that will gather the top car finance companies in the UK. You can look at what they have to offer at a glance. Most lenders also offer customers the convenience of applying for car finance online. Once your application is approved, go ahead and shop for the best cars to buy on hire purchase.

When it comes to fast, efficient, and easy car finance, Carmoola is a game-changer. You can apply for car finance with just your smartphone. Start by downloading Carmoola and following the steps to verify your identity. The whole process only takes a few minutes, and you’ll know the result almost instantly! Sounds good? That's how Carmoola works! 👍