Hire purchase car finance with AutoMoney Trust
AutoMoney Trust is a direct lender, not a broker. We offer hire purchase car finance from £4,000 to £25,000, funded directly by us, with no panel of lenders and no middleman involved in the decision. This page explains how our hire purchase product works, who it is for, and what to expect from the application through to driving away.
With hire purchase, you agree to pay the cost of the car in fixed monthly instalments over a set term. AutoMoney Trust pays the dealer directly for the car, and you repay us each month over 36 to 84 months. At the end of the agreement, you make a small option to purchase payment and the car becomes yours outright.
Because the car acts as security for the loan throughout the agreement, hire purchase can be more accessible than unsecured borrowing for applicants with poor credit or a limited credit history. You do not own the car until the final payment, which means you need our agreement before selling or making significant modifications, but otherwise you use the car as normal from day one.
For a fuller explanation of how the product works and how it compares to other types of finance, see our guide on how does hire purchase car finance work?.
AutoMoney Trust considers applications from a wide range of customers, including those who have been turned down elsewhere. You must be 18 or over, a UK resident, and in employment, including part-time work, with a regular income that supports the repayments. We require at least some credit history, though it does not need to be a strong one. We also accept applications from people with poor credit, CCJs, or defaults.
We do not require a deposit, and we do not use a guarantor model. Hire purchase is secured against the vehicle itself, so there is no need for a second person to underwrite your application.
For more detail on what we look at when assessing an application, see our guide on car finance with poor credit or a CCJ.
AutoMoney Trust is a direct lender, not a dealership. We do not sell cars directly, but we work with a network of trusted dealers across the UK. When you are approved, you choose a car from one of these dealers and we pay them directly on your behalf. The dealers in our network have been checked and are expected to treat customers fairly.
If you have already found a car you want, it is worth checking with us whether the dealer is in our network or whether the car meets our lending criteria before proceeding. Not every dealer or every car will be eligible.
We lend from £4,000 to £25,000 on hire purchase agreements, with terms from 36 to 84 months. The amount you can borrow depends on affordability rather than a fixed formula: we look at your income, outgoings, and the value of the car you want to finance. No deposit is required, so the full cost of the car can be financed.
Use the car finance calculator to see what your monthly payments would look like at different loan amounts and terms before you apply. The calculator gives you an indicative figure based on the loan amount, term, and representative APR.
The initial eligibility check is a soft search, which does not appear on your credit file and will not affect your credit score. You fill in our application form with details of your income, outgoings, and the car you want to finance. We assess the application and come back to you with a decision.
If you are approved, we will contact you with the details of the agreement, including the monthly payment, total amount payable, and APR. You will have time to review the agreement before signing, and there is a 14-day statutory cooling-off period under the Consumer Credit Act during which you can withdraw without penalty if you change your mind.
Once the agreement is signed and all documentation is in order, we pay the dealer and you collect the car.
At the end of your hire purchase term, you make a final payment that includes a small option to purchase fee. This transfers legal ownership of the car to you. There is no large balloon payment and no decision to make about keeping or returning the car as there would be with PCP. Once that final payment is made, the car is yours outright to keep, sell, or part-exchange as you choose.
If your circumstances change during the agreement and you want to end it early, there are two routes available depending on how much you have paid. For more detail, see our guides on voluntary termination of car finance and voluntary surrender of car finance.
We are a direct lender, regulated by the Financial Conduct Authority (FRN 912573), and a member of the Finance and Leasing Association. We are also SAF Expert approved, which is the industry standard for demonstrating that finance products are explained clearly and fairly to customers.
We have financed over £125 million and helped over 10,000 customers since 2020. Our Google rating is 4.7. We are based in Redditch and all decisions are made by our own team, with no outsourced underwriting or third-party panel involved.
The initial check is a soft search that will not affect your credit file. You can check your eligibility and start an application on our apply for car finance page. If you have questions before applying, our customer hub guides cover everything from how hire purchase works to what happens if your circumstances change during the agreement.
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.
The main difference between fixed and variable car finance rates is whether the interest rate can change during your agreement. A fixed interest rate means your rate and monthly car finance payments stay the same throughout the finance term, giving you certainty over what you'll pay and making it easier to budget. In comparison, a variable interest rate can rise or fall over time, meaning your monthly payments may change.
AutoMoney Trust offers fixed-rate hire purchase car finance only, so you know exactly what your monthly repayments will be for the full term of your agreement. While fixed rates may sometimes be higher than an introductory variable rate, they provide protection against future interest rate rises and make it easier to plan your finances with confidence.
When comparing car finance options, it's important to consider not only the interest rate but also the APR, total amount payable, and the overall cost of borrowing. For more information read our guide on What Is Car Finance APR?.
Yes, if you finance your car with AutoMoney Trust, you'll need to maintain fully comprehensive insurance for the entire duration of your hire purchase agreement. This is because the vehicle remains the property of AutoMoney Trust until you've made your final repayment and ownership transfers to you.
Comprehensive car insurance provides protection against a range of situations, including accidental damage, theft, fire and third-party claims. Keeping the vehicle insured for the full duration of your agreement helps protect both you and the lender by ensuring the car remains covered throughout the finance term.
When budgeting for a financed car, it is important to consider insurance as part of your overall running costs. Fully comprehensive cover is often more expensive than third party or third party fire and theft insurance, so make sure you include this alongside your monthly finance payments, fuel, servicing, and other vehicle expenses.
Some drivers choose to consider GAP insurance, which can help cover the difference between your insurer's settlement value if the vehicle is written off and the remaining balance on your car finance agreement when the outstanding balance may be higher than the vehicle's market value.
No, AutoMoney Trust does not charge early repayment fees on its hire purchase finance agreements, meaning you can complete your car finance settlement without paying additional penalty charges.
Whether you want to pay off your finance early, reduce your monthly commitments or sell your vehicle, settling your agreement ahead of schedule can provide greater financial flexibility and may reduce the overall cost of borrowing. To better understand how interest affects the total amount you repay, read our guide on what APR means in car finance.
Under the Consumer Credit Act 1974, customers who repay their hire purchase agreement early are generally entitled to an interest rebate. This means you do not usually pay all of the interest that would have been charged over the remaining term, reducing the total amount payable compared with continuing your monthly repayments until the end of the agreement.
If you would like to arrange a car finance settlement, you can request a settlement figure from AutoMoney Trust. This shows the total amount required to repay your finance agreement in full, taking into account any applicable interest rebate. Your settlement figure is valid for 28 days, giving you time to review the amount and decide whether early settlement is right for you.
Settlement policies can vary between lenders. While AutoMoney Trust does not charge early repayment fees, some providers may apply early settlement charges or calculate interest rebates differently. Before choosing to pay off your car finance early, always check the terms of your agreement and understand how your settlement amount has been calculated.
If you are considering a car finance settlement because you want to sell a financed car or part exchange your vehicle, our guide on Selling a Financed Car explains the process, what happens with outstanding finance, and the options available.
