AutoMoney Trust offers hire purchase car finance exclusively. With a hire purchase agreement, you spread the cost of your vehicle through fixed monthly payments over an agreed term of 36 to 84 months. Once you have made all your payments and paid the option to purchase fee, ownership of the car transfers to you.
We specialise in used car hire purchase finance, providing a straightforward finance option with fixed monthly repayments and no optional balloon payment at the end of the agreement. This gives customers greater certainty over the total cost of borrowing and a clear route to owning their vehicle.
AutoMoney Trust does not offer Personal Contract Purchase (PCP), personal loans, leasing, or any other type of car finance product. By focusing exclusively on hire purchase car finance, we provide a simple and transparent solution or customers looking to finance a used car.
The main difference is that with Hire Purchase (HP) you own the vehicle at the end of the agreement, whereas Personal Contract Purchase (PCP) includes an optional final balloon payment if you want to keep the car.
With Hire Purchase, you repay the full value of the vehicle through fixed monthly payments and become the owner once all payments and any option to purchase fee have been paid.
With PCP, monthly payments are usually lower because you are paying towards only part of the vehicle's value. At the end of the agreement, you can pay the balloon payment 9also known as a final payment) to keep the vehicle, return it, or choose another available option.
One of the main differences between HP and PCP finance is how ownership and mileage work. PCP agreement often include annual mileage limits and potential charges if the vehicle exceeds the agreed mileage or is returned with damage outside normal wear and tear. Hire purchase does not usually have mileage restrictions, making it a popular option for drivers who want flexibility and the certainty of owning the vehicle at the end of the agreement.
AutoMoney Trust offers hire purchase car finance only, providing customers buying used cars a straightforward agreement, fixed monthly payments, and the reassurance that they can own their vehicle once the agreement is completed.
With an AutoMoney Trust hire purchase agreement, legal ownership of the car transfers to you only after you have made all of your monthly payments and paid the £10 option to purchase fee at the end of the agreement. Until then, the vehicle remains the property of AutoMoney Trust.
Although you won't legally own the car during the finance term, you are responsible for its day-to-day running costs, including vehicle tax, insurance, MOT, servicing, and maintenance. As the finance provider owns the vehicle until the agreement is complete, you cannot normally sell, transfer ownership of, or make significant modifications to the car without our permission.
It is also important to keep up with your car finance payments, as missed payments could lead to arrears and, in some circumstances, the vehicle may be at risk of repossession if the agreement is not brought back up to date.
Once you have made your final monthly payment and paid the option to purchase fee, legal ownership transfers to you, and the car becomes fully yours with no further finance obligations.
The length of your car finance agreement can have a significant impact on both your monthly payments and the total cost of borrowing. Choosing a longer finance term, such as 60 or 84 months, spreads the cost of the vehicle over a greater number of payments. This can make your monthly payments more affordable, but it may mean you pay more interest overall throughout the agreement.
A shorter car finance term, such as 36 months, usually results in higher monthly payments because the balance is repaid over a shorter period. However, paying the agreement off sooner can reduce the overall amount of interest paid, making it a potentially lower-cost option over the full term.
When choosing the right finance term, it is important to consider your budget, monthly affordability, and how long you plan to keep the vehicle. The best option is one that allows you to comfortably manage your payments without putting unnecessary pressure on your finances.
AutoMoney Trust offers car finance terms from 36 to 84 months, giving you flexibility to choose an agreement that suits your circumstances. Use our car finance calculator to compare different term lengths and understand how your monthly payments and overall costs could change before applying.
Car finance usually costs more than the car's cash price because you're paying to borrow money to purchase the vehicle. The total amount payable includes the amount borrowed, plus interest and any applicable fees charged over the term of the finance agreement, which increases the overall cost.
For example, a £10,000 car on a 60-month agreement at a representative APR may cost several thousand pounds more in total once interest, and the option to purchase fee is included.
Several factors affect the total cost of car finance, including your APR, the length of your finance term, the size of your deposit, and the amount you can borrow. A longer agreement can reduce your monthly repayments but will often increase the total amount of interest paid over the life of the agreement. A larger deposit or shorter term may reduce the overall cost of borrowing. If you're unable to put money down upfront, our guide to zero deposit car finance options explains how these agreements work and what to consider before applying.
Before entering into any hire purchase agreement, it is important to review the total amount payable, monthly repayments, and APR so you understand the full cost of the finance. You can also use the AutoMoney Trust car finance calculator to compare different borrowing amounts, deposits, and agreement terms to find an option that best suits your budget.
