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What is Hire Purchase?

Hire Purchase (HP) is a simple finance agreement that leads to ownership. This could make it ideal if you’re thinking of keeping your Škoda after the repayment period has ended.

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How much do I pay and when?

With Škoda Hire Purchase (HP), you pay an initial deposit followed by fixed monthly instalments over the term of your agreement. The amount you pay each month will depend on the car and repayment period you choose. This period can be between 12 months and 60 months, and your payments will ultimately cover the car’s full price plus interest.

After a final option to purchase fee at the end of term, the car is yours with nothing more to pay.

What are the benefits of Hire Purchase?

Own your Škoda

Once all payments are made, the car is 100% yours.

Low deposit

Deposits can be as little as one monthly repayment.

Choice of term

From 12 months to 60 months, choose the repayment term that suits your budget.

Unlimited mileage

Unlike some finance plans, there is no mileage restriction.

Hire Purchase FAQs

What is Hire Purchase on a car?

Hire Purchase (HP) is a way to finance your new car. You pay an initial deposit followed by monthly instalments over your agreed repayment period. This period is usually between 12 and 60 months, with monthly payments being greater the shorter the period is. At the end of the repayment period, you pay an option to purchase fee and the car is yours.

What’s the difference between Hire Purchase and Contract Hire?

With Hire Purchase, the monthly payments you make are instalments towards owning the car outright once the agreement term ends. With Contract Hire, you are entering a long-term rental agreement. At the end of the term of that agreement, you return the car.

What are the benefits of getting a new car on Hire Purchase?

Unlike some car finance plans, once all payments are made, the car is yours. Deposits can be as little as one monthly repayment and you can choose the repayment term that suits your budget, usually between 12 and 60 months. With Hire Purchase, there are no mileage restrictions.