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Looking for new wheels on a Hire Purchase agreement? Let us help you with your finances!

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What is Hire Purchase?

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. Often, there are no annual mileage limits to worry about, so you can drive as much as you like!

How does Hire Purchase work?

A Hire Purchase agreement provides you with a loan to cover the cost of your new used car. You might have to pay a deposit, however Carmoola is a lender who will allow you to take a Hire Purchase agreement with 0 deposit, provided the value of the vehicle is as expected. If you’re looking to buy a used car on HP, you’ll need to pass a credit check first.


The key features of Hire Purchase are:

  • Fixed contract length, usually between 2 and 5 years
  • Even monthly repayments for the duration of your loan
  • Start your loan with, or without an upfront deposit
  • Own the car outright, once all the repayments have been made

Is HP the right choice for me?

A Hire Purchase agreement might be right for you if you’d like to buy the vehicle at the end of your loan agreement.

Why choose Carmoola for your Hire Purchase deal?

At Carmoola, we put the customer first. Applying for a Hire Purchase loan has never been easier. All you need is our app and a full driving licence.

What details do I need to apply for a Hire Purchase agreement?

To apply for a Hire Purchase agreement, 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!

How to apply for Hire Purchase finance?

To apply for a loan with Carmoola, simply download our app and answer a few questions. You can also head over to our Hire Purchase calculator to see how much you can afford.

Answer a couple of questions to find out if you might be eligible to buy your car with Carmoola!


See if you’re likely to be approved for a budget 🤞

  • Aged between 18 - 75
  • Live in the UK
  • Have a full driving licence
  • Buying a second hand car
  • Borrowing between £2K - £40k

How it works

Out with the old. Drive in with the new.


Get a budget in 60 seconds

In a few questions, find out how much you can spend on your car

Step 2

Buy your car from anywhere

Pay swiftly online with your card, or by bank transfer at the showroom

Step 3

Hit the road and pay monthly

Take full control of your account in the Carmoola app

See How Carmoola Works

No dealership commissions, no middlemen. Just you, and us 🥰


5 ⭐️ support

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. 🚘”



FAQs About Hire Purchase

Here are the most frequently asked questions about how Hire Purchase works. Got more questions? Head over to our FAQs page 👍

What is the difference between Hire Purchase and a loan?

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.

Can I sell a Hire Purchase car?

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.

What if I can’t afford my Hire Purchase payments?

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. 

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