Hire Purchase agreements simply mean you’re paying the price of the vehicle off monthly, over an agreed period. As soon as the last payment is made and you pay the option to purchase fee (which is usually £1), the vehicle is yours. Putting down as much as you can up front will bring down your monthly repayments and will also reduce the amount of interest incurred.

How it works – 

• Choose the vehicle you like.
• Choose the repayment period – between 12 and 60 months.
• Agree on a deposit and monthly repayments to suit your budget.
• At the end of the agreement, as long as all the payments have been made, the vehicle is yours.

Ownership of the vehicle will remain with your lender until you have paid both the option to purchase fee and all the monthly repayments. It is really important that you keep up to date with your monthly repayments so please contact your lender if you are having any difficulties as the vehicle and your credit score maybe at risk if you don’t.

Scotts Commercials (Lincoln) Ltd is a credit broker not a lender. We typically receive a finance commission from the lender for arranging a hire purchase agreement for you. This commission is either a fixed fee or a fixed percentage of the amount you borrow, different lenders may pay different commissions for such agreements. This commission DOES NOT affect the amount you pay, it has been arranged in advance, and is not linked to the specific charges for credit of your agreement.

As Scotts act on behalf of the lender when processing your application, we have no ability to negotiate, or adjust your interest rate, APR, or any other items included in the total charge for credit, and does not offer impartial advise.