What’s the difference between a personal car loan and hire purchase?

There are a few key differences between personal car loans and hire purchase (HP) agreements:

  • You can borrow more with HP – up to £200,000
  • HP is secured against your car whereas a personal loan is not
  • With a personal loan, you’ll own your car from the point of purchase, but with HP you’ll own your car once the last payment has been made
  • You might need a deposit with for HP, you won’t with a personal loan
  • You have more flexibility on where you can buy your car from with a personal loan
  • There may be mileage restrictions with HP while you pay off your finance

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