After paying a deposit on your car, you can agree to a Hire Purchase Loan with your car dealership. You do not own the vehicle until the entire loan amount has been paid off, which includes interest. Once the final payment has been made, the owner then has the choice to own the car or sell it on.
If you fall behind on your payments, the car dealership has the right to repossess your vehicle to try and recover some of the car loan. Calculating a realistic loan amount is crucial before agreeing to a Hire Purchase Loan.
Whilst you’re repaying the car loan, by law, you are not allowed to sell the car without the lender’s permission.
Do you have any other questions regarding car finance? We have put together some of our most common questions. Click on the links below.