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Looking for Hire Purchase finance for your new ride? Find a finance agreement that works for you.
Takes 60 seconds, no impact on your credit profile to see if you're approved 👍
Representative 14.8% APR
Hire Purchase is a car finance plan that helps you to spread the cost of your next car by making monthly payments over an agreed length of time. You’re likely to pay higher monthly payments than you would with other car finance options, but when you come to the end of the HP agreement you’ll own the car outright.
A Hire Purchase agreement provides you with a loan to cover the cost of your next car. You might have to pay a deposit, but this is variable depending on the lender's specific criteria.
Carmoola is a lender who provides Hire Purchase agreements with no deposit.
You can use cash, trade in your old car, or mix both. More money upfront means smaller monthly payments.
Confirm how much you can borrow and agree on fixed monthly payments and a loan term that works for you.
Unlike some options, there's no big sum due at the end. Just an ‘Option to Purchase’ of £1 which covers the transfer of ownership. Once you make all your regular payments (and any extra fees), the car is yours!
A Hire Purchase agreement might be right for you if you’d like to buy the vehicle at the end of your loan agreement and can manage the higher monthly payments.
No annual mileage limits: You can drive as much as you like without mileage restrictions.
Tailored payments: Choose a repayment term that works for you between 1 and 5 years, though be aware of increased interest for longer terms.
Low upfront cost: Start with a low or no deposit, making it easier to get started.
Predictable payments: Lock in a fixed interest rate for the entire term, giving you complete control over your monthly expenses.
Accessible option: Even with a not-so-perfect credit score, hire purchase can be easier to secure than unsecured loans thanks to the car acting as collateral.
Own the car outright: You become the car's owner once you complete all payments
Not your wheels yet: The car isn't truly yours until the final payment has been made.
Modifications on hold: No customisation or selling until you own it outright.
Paying a bit more: Compared to PCP and leasing, your monthly payments will most likely be slightly higher.
Early repossession risk: Before a third of the car is paid, repossession without court order is a possibility.
All you need is our app and a full driving licence, in order to apply for a Hire Purchase agreement with Carmoola. Firstly, we'll need to run a soft credit search.
For this, you'll need to answer a few questions such as your name, current address, date of birth and some information about your regular income and expenditure. You'll also need a full driving licence, and later in the journey you'll need to provide the details of the car you'd like to buy. We'll even run a free history check for you on the car!
At the finish line of your Hire Purchase agreement, you take the keys to full ownership. Settle any final fees, pay £1 for a transfer of ownership to be processed and the car is all yours.
Answer a couple of questions to find out if you might be eligible to buy your car with Carmoola!
Eligibility
How it works
Step 1
In just 60 seconds, see how much you can borrow towards your next car
Step 2
Pay swiftly online with your card, or by bank transfer at the showroom
Step 3
Take full control of your account in the Carmoola app
No dealership commissions, no middlemen. Just you, and us 🥰
Got a question? Our friendly, UK-based team is here from 8am - 9pm EVERY day, via WhatsApp, email, SMS or phone.
“Such a simple way to get car finance and at a good rate too. Easy to use app with step by step process. Love the finance calculator, which allows you to adjust the amounts and see the payments instantly. Would definitely recommend!”
“Easy to use and to get a budget with their online calculator! The best part is the flexibility, you can choose how much within your allocated budget and for how long to repay. Will defo use again in the future. *****”
“Absolutely amazing service, super quick to respond and it couldn’t have been easier, I would 100% recommend Carmoola to anyone!”
“Not just a normal car Finance company!! Very fast and efficient and they make you feel like a valued family member, lots of unexpected after sales benefits that have been very much welcomed and appreciated too!!”
“Incredible experience! Omg! The way forward in car finance. I’d use these guys again and thoroughly recommend them. 🚘”
Here are the most frequently asked questions about how Hire Purchase works. Got more questions? Head over to our FAQs page 👍
A Hire Purchase agreement is a secured loan against the specific car you're buying, whereas a loan from your bank can be for anything. There are also certain protections and rights you'll receive under a Hire Purchase agreement, that you may not get from a regular loan.
HP is all about ownership. Put down a deposit, spread the remaining cost over fixed monthly payments, and voila – the car is yours once you have completed your payments.
PCP, on the other hand, provides a different option. You pay off just a portion of the car's initial value, keeping your monthly payments lower. At the end, you have options: pay off the remaining "balloon payment" to own the car, return it and walk away, or trade it in for a new one. It's like renting with a potential to buy later.
Want to find out more about HP vs PCP? Why not read our guide to get to grips with the pros and cons of each car finance option.
Yes, however you'll need to pay off your Hire Purchase agreement in full first. If you're thinking of selling the car, request an Early Settlement Quote first, so you know how much you'll need to pay to settle the agreement. The finance company will have an interest registered against the car, so until you pay off the Early Settlement Quote in full, they are still the legal owner of the vehicle and you're not permitted to sell it.
If you're struggling to pay, you should get in touch with the finance company as soon as possible. Give them information about how your current situation has changed, and they will be able to help you with the next steps. Sometimes, these situations can be worrying, but don't bury your head in the sand. It's best to communicate with the finance company as soon as you can.
What would you like to do first?
Takes 60 seconds, no impact on your credit profile to see if you're approved 👍
Rates from as low as 6.9% APR, Representative 14.8% APR
Carmoola is a trading name of Carmoola Limited which is registered in England & Wales, under Registered No. 12992987. Its Registered Office is First Floor, 1 Whittlebury Mews West, Primrose Hill, London, NW1 8HS. Carmoola Limited is authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 958057), and a member of CIFAS (the UK’s leading fraud prevention service).
Registered with the Information Commissioner’s Office in compliance with the Data Protection Regulations 2018 under registration ZA905089.
Finance is subject to status and is only available to UK residents aged 18 and over. Carmoola is committed to responsible lending.
To get in touch, email us at support@carmoola.co.uk
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