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Representative Example: Cash price £11,500. Deposit £0. Total amount of credit £11,500. Borrowing £11,500 over 60 months at a fixed annual interest rate of 12.0%, with an initial payment of £505.50 (including a £199 admin fee), followed by 58 monthly payments of £306.50 and a final payment of £505.50 (including a £199 option to purchase fee).

Total amount repayable £18,788. Representative 23.6% APR.

Admin fee

The Admin Fee is a £199 fee that helps cover the costs of setting up your finance agreement. It covers things like preparing your agreement documents, carrying out credit and identity checks, and arranging payment to the broker. This fee is paid at the same time as your first payment, and it isn't refundable. It's separate from your deposit and from any other charges on your agreement.

Option to purchase fee (OPT Fee)

The Optional Purchase Fee is a £199 fee you only pay if you decide to buy the car at the end of your finance agreement. You don't have to buy the car, that's entirely your choice. If you choose to hand the car back instead, you won't pay this fee. If you decide to keep the car, you'll need to pay the £199 Optional Purchase Fee, usually along with your final payment, to transfer legal ownership of the vehicle to you. This fee covers the cost of finalising your agreement and removing our interest in the vehicle. It's separate from your deposit and from any other charges on your agreement.

Please note

The amount shown is an illustration of a typical monthly payment based on the Representative APR. These figures are for guidance only; the actual payments and rate you're offered will depend on your individual circumstances and are not guaranteed. Please see below for details of how your first and final payments may be different.

More about how we calculate this

The example rates reflect what at least 51% of customers with a similar credit profile receive, based on our standard lending criteria. If you choose “Good”, “Average”, or “Below Average” credit, the figures shown use the representative rate for that category. Your selection is for illustration only and doesn't affect how we assess your application.

Rates, fees, and terms may change before an agreement is made. If approved, your personalised quote will confirm your actual rate, payments, and any fees.

Getting Started with HP Finance

Buying your first car with HP finance can feel confusing, but our simple process and on-hand support can help you get started confidently.

Understanding HP Car Finance

HP car finance, also known as Hire Purchase, lets you spread the cost of a car in fixed monthly payments.

You usually pay an initial deposit, then make regular payments over an agreed term.

Once you’ve made the final payment, you’ll own the car outright.

Because HP car finance is straightforward and predictable, it’s a popular option for first-time buyers and young drivers.

Checking You Can Afford HP Car Finance

Before you apply for HP car finance, lenders will look at whether the monthly payments are affordable for you.

They’ll consider your income, regular outgoings, and how you’ve managed credit in the past.

Paying bills on time, avoiding missed payments, and managing any existing credit sensibly can all help your application.

Even if your credit score isn’t perfect, strong affordability can still support a successful HP car finance application.

Applying for HP Car Finance

To apply for HP car finance, you’ll need some basic documents and information.

Typically this includes proof of ID, a valid UK driving licence, and proof of income such as payslips or bank statements.

You’ll also be asked for at least three years’ address history and your current employment details.

Having this information ready can help your HP car finance application move faster and more smoothly.

Budgeting for Your First Car on HP Finance

When you budget for HP car finance, remember it’s not just the monthly payment you need to plan for.

You’ll also need to factor in insurance, fuel, servicing, repairs, MOTs, and road tax.

Comparing quotes for insurance and running costs before you commit can help you choose a realistic monthly payment.

Building a small safety buffer into your budget can make your first HP car finance agreement more comfortable and sustainable.

Apply now

Want to learn more about car finance?

If you want to know more about how car finance works and what you need to consider before applying, you can read our finance guides. Learn about Hire Purchase, how it works, and more about the application process.

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