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Mazda Hire Purchase
For many people, Hire Purchase is an easy and effective way of buying a car over a length of time that best suits their budget. A Hire Purchase agreement is different to a regular car loan, because you don’t actually own the vehicle until it’s repaid.
With a Hire Purchase agreement from Johnsons Cars, you pay a deposit and then regular monthly sums. The terms of the deal are slightly different from those of a standard personal loan, in that the lender is entitled to ask for the car back if you fail to keep up repayments. You are prohibited from selling the vehicle unless the full amount has been repaid.
The benefits to you
- Hire Purchase is cheaper than an (unsecured) personal loan, as the ownership of the car is retained by the finance company (it is, in other words, a secured loan). If you don’t make your monthly payments, they will simply repossess the car.
- Hire Purchase is relatively quick, as it is offered directly by most dealers and manufacturers, and terms can be agreed more easily than personal loans.
- Deposits are lower than with personal loans.