Hire purchase.
Pay it off, keep the car.

You pay a deposit, then fixed monthly payments across the term. The lender owns the car until the final payment, at which point ownership transfers to you — usually on payment of a small option-to-purchase fee written into the agreement.

The loan is secured against the car itself. If payments stop, the lender has an asset to recover, which reduces their risk considerably compared with an unsecured loan. That security is why HP lenders will often consider applicants that other products would decline.

No. Unlike PCP or leasing, you are buying the car outright over time, so how far you drive is your business. That makes HP a sensible choice for high-mileage drivers who would be hammered by excess mileage charges elsewhere.

Yes. You have a statutory right to settle early and receive a rebate on some of the interest. Ask your lender for a settlement figure. There is also voluntary termination — once you have paid at least half the total amount payable, you can hand the car back and walk away.

Monthly payments are higher on HP, because you are paying off the entire value of the car rather than deferring a chunk to the end. Total cost is often lower, though, and you finish owning something. See our HP or PCP comparison for a fuller picture.