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 4.8. 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.
Your loan term directly affects both your monthly payments and the total cost of borrowing. A longer term, such as 60 or 84 months, spreads the cost over more payments, lowering the monthly amount but increasing the total interest you pay across the agreement. A shorter term, such as 24 or 36 months, means higher monthly payments but a lower overall cost. AutoMoney Trust offers terms from 24 to 84 months, so you can balance monthly affordability against total cost. Use our finance calculator to compare different term lengths before applying.
A fixed rate keeps your interest rate and monthly payments the same throughout your agreement, giving you predictable costs from start to finish. A variable rate can rise or fall during the term, usually tracking the Bank of England base rate or the lender's standard variable rate, which means your payments can go up or down. AutoMoney Trust offers fixed interest rates only, so you know exactly what you will pay each month. Fixed rates provide certainty but may start slightly higher than introductory variable rates; the trade-off is protection from future rate rises. For more detail, read our guide on What Is Car Finance APR?.
Fully comprehensive insurance is required throughout your finance agreement with AutoMoney Trust, because the vehicle legally belongs to us until your final payment is made. Comprehensive cover protects both you and the lender against damage, theft, fire, and accidents, ensuring the asset is protected for the full term. It is typically more expensive than third party or third party fire and theft cover, so factor this into your monthly running costs when budgeting. Many drivers also consider GAP insurance, which covers the difference between an insurance write-off payout and the outstanding finance balance.
AutoMoney Trust does not charge early repayment fees, so you can settle early without penalty. Under the Consumer Credit Act 1974, you are also entitled to an interest rebate when you repay ahead of schedule, which reduces the total amount owed compared with continuing the agreement. To settle early, request a settlement figure from us, this is valid for 28 days and represents the full amount needed to close your agreement. Other lenders may apply early settlement charges or different rebate calculations, so always check your agreement before settling. For wider information around selling a financed vehicle, see our guide on Selling a Financed Car.
