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Last updated and reviewed - 5 October 2026
Hire purchase car finance with AutoMoney Trust
AutoMoney Trust offers Hire Purchase (HP) car finance, allowing you to spread the cost of a vehicle over an agreed schedule of monthly payments. We are a direct lender, which means we assess your application, make our own lending decision and manage your agreement directly.
With hire purchase, AutoMoney Trust owns the vehicle while you make your repayments. Once you have made all the required payments and paid the option to purchase fee, ownership of the vehicle transfers to you.
With hire purchase, you agree to pay the cost of the car over an agreed schedule of monthly payments. 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.
We consider applications from people with poor credit, subject to our lending criteria and affordability checks. You do not own the car until you make all the required payments, including the option to purchase fee. You need our agreement before selling it or making significant modifications. If you do not keep up repayments, your car could be repossessed.
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?.
You can apply for hire purchase car finance if you meet the lender's eligibility requirements and can demonstrate that the proposed repayments are affordable.
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 guarantor. We can consider finance without a deposit, subject to our lending and vehicle criteria. Fees still apply and are shown in your offer. If the car costs more than we can lend, you will need to cover the difference.
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.
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 calculator gives an illustration, not an offer. Your actual rate and payment schedule will be shown in your finance offer
Our initial eligibility check uses a soft search. You can see it on your credit report, but it does not affect your credit score and other lenders do not see it when assessing applications. If you choose to continue with a full application, we carry out a hard search, which other lenders can see and which may affect your score. An eligibility result is not a guarantee of approval.
If approved, we will give you the payment schedule, APR and total amount payable to review before signing. Once the agreement is signed and all documentation is in order, we pay the dealer and you collect the car.
You normally have 14 days to tell us you want to withdraw from the credit agreement. The period starts the day after the agreement is made or you receive the required agreement information, whichever is later. If credit has already been provided, you must repay it plus interest for the time you had it, without undue delay and within 30 days after giving notice. Withdrawing from the credit does not by itself give you a right to return the car. Your agreement explains how to give notice.
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 you want to finish early and keep the car, as us for a settlement figure. If you want to return it voluntary termination and voluntary surrender have different consequences. Read our guides or contact us to understand what you would still owe. If the car is faulty, tell us: your rights about the car are separate.
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.
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 score. 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.
AutoMoney Trust offers a fixed interest rate, so your rate will not rise during the agreement. Your payment schedule is agreed at the start. The first or final payment may be different if it includes a fee, so check the full schedule when planning your budget. With a variable interest rate, the rate and payments may change. Compare the APR, payment schedule and total amount payable before deciding.
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.
Include a quote for the required comprehensive insurance in your budget. The price depends on the driver, car and policy. Allow for insurance alongside your finance payments, fuel, servicing and other running costs.
Some drivers also 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. GAP insurance is optional. Cover depends on the policy’s exclusions and limits and may not clear the full finance balance.
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.
If you're considering early settlement on car finance, you may be entitled to an interest rebate. Under the Consumer Credit Act 1974, customers who repay their hire purchase agreement early generally do not pay all of the interest that would have been charged over the remaining term. This reduces 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.
