{"id":1444,"date":"2020-02-25T14:15:20","date_gmt":"2020-02-25T08:45:20","guid":{"rendered":"https:\/\/www.extramilefinance.uk\/blog\/?p=1444"},"modified":"2020-02-25T14:20:11","modified_gmt":"2020-02-25T08:50:11","slug":"hp-and-pcp-finance-difference-its-work","status":"publish","type":"post","link":"https:\/\/www.extramilefinance.uk\/blog\/hp-and-pcp-finance-difference-its-work\/","title":{"rendered":"What Makes Hiring Purchase An Ideal Solution For Car Financing?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_52 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f4cc8e4b6f7\"><span class=\"\"><span style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f4cc8e4b6f7\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.extramilefinance.uk\/blog\/hp-and-pcp-finance-difference-its-work\/#What_is_HP_Finance\" title=\"What is HP Finance?\">What is HP Finance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.extramilefinance.uk\/blog\/hp-and-pcp-finance-difference-its-work\/#How_Does_HP_Finance_Work\" title=\"How Does HP Finance Work?\">How Does HP Finance Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.extramilefinance.uk\/blog\/hp-and-pcp-finance-difference-its-work\/#What_Is_The_Difference_Between_HP_and_PCP_Finance\" title=\"What Is The Difference Between HP and PCP Finance?\">What Is The Difference Between HP and PCP Finance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.extramilefinance.uk\/blog\/hp-and-pcp-finance-difference-its-work\/#Top_Reasons_To_Go_With_HP_Finance\" title=\"Top Reasons To Go With HP Finance\">Top Reasons To Go With HP Finance<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Car is a basic need that often people\nrequired in their daily life, but this doesn\u2019t change the fact that buying it\ninvolves a lot of money. Car purchasing is one of the significant investments\nthat any typical person would make in his\/her life.&nbsp; Now, a large number of people in the UK go\nfor car financing so that they can get their dream car faster.<\/p>\n\n\n\n<p>So, if you have decided to buy a car, but don\u2019t have enough savings to make the purchase, then Hiring Purchase could help you. It is one of the most popular car financing options available in the market that lets the borrower spread the overall cost of the car. This way, you can get the car and make the payment in instalment. Now, let us understand this concept clearly. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_HP_Finance\"><\/span><strong>What is HP Finance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Hiring Purchase or also known as HP is the\nway of car financing where the dealer provides you with the car till the time\nof the agreement. Meanwhile, you will have to make the monthly instalment, and\nafter you have cleared the payment, the vehicle will solely and legally belong\nto you.<\/p>\n\n\n\n<p>If possible, you can provide the deposit, but that is not compulsory. However, the larger the deposit you make, the lesser will be the amount that you will need to borrow. Thus, you could provide the saved money as the deposit and borrow the remaining amount by going with HP financing. But, whether you make the deposit or not, paying the monthly installment is mandatory that can be around from 1 to 5 years. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_HP_Finance_Work\"><\/span><strong>How Does HP Finance Work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After you apply for HP financing of the\ncar, the financial company will go through your application and analyse your\ncreditworthiness. For this, all your details such as: <\/p>\n\n\n\n<ul><li>Employment history <\/li><\/ul>\n\n\n\n<ul><li>Income status <\/li><\/ul>\n\n\n\n<ul><li>Credit score <\/li><\/ul>\n\n\n\n<ul><li>Personal details (Like Name,\nAddress, etc) <\/li><\/ul>\n\n\n\n<p>Yes, there is an option where you can take HP finance without making any deposit. However, with no upfront cost, the borrowing amount will be higher and thus, the overall interest. Hence, if possible, try to provide a certain amount as a deposit. It will lower the burden of making a hefty monthly payment. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_The_Difference_Between_HP_and_PCP_Finance\"><\/span><strong>What Is The Difference Between HP and PCP Finance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Now, people financing their car might get confused with Hiring Purchasing (HP) and <a href=\"https:\/\/www.extramilefinance.uk\/blog\/pcp-car-finance-its-work\/\">Person contract Purchasing (PCP)<\/a>, as they function somewhat similar in certain aspects. It is correct that both of them work on the same principle where the borrower has to make a deposit and pay the later amount as installment.<\/p>\n\n\n\n<p>However, there is one significant difference in them, and, i.e.&nbsp; In HP, you own the car after you have the made the last instalment. On the other hand, if you do with the option of PCP financing, you will have the option of whether you want to keep the car or not.<\/p>\n\n\n\n<p>And to do so, you will have to make the\nfinal payment also known as the balloon payment. It is the amount that the\nfinancial company decides and predicts the value of the vehicle after the\ncompletion of the term. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Top_Reasons_To_Go_With_HP_Finance\"><\/span>Top Reasons To Go With HP Finance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are plenty of reasons to go with HP\nfinance to get a car, of which we have mentioned the major ones. So, let us see\nthem. <\/p>\n\n\n\n<ul><li>The benefit of spreading the\ncomplete cost of the car<\/li><\/ul>\n\n\n\n<ul><li>The car will be entirely yours\nafter making the final payment <\/li><\/ul>\n\n\n\n<ul><li>Depositing the amount is not\ncompulsory <\/li><\/ul>\n\n\n\n<ul><li>Unlike PCP, you don\u2019t face any\nBalloon Payment to own the car <\/li><\/ul>\n\n\n\n<ul><li>The <a href=\"https:\/\/www.extramilefinance.uk\/\">loan<\/a> term is flexible and can range from 1 year to 5 years. <\/li><\/ul>\n\n\n\n<p>Remember, also that the monthly payments\nyou will have to make will be decided by three factors that are: <\/p>\n\n\n\n<ul><li>Deposited amount <\/li><\/ul>\n\n\n\n<ul><li>Length of the loan <\/li><\/ul>\n\n\n\n<ul><li>APR offered by the lender<\/li><\/ul>\n\n\n\n<p>Wrapping up, this was everything that you\nneed to know about HP financing before you head to apply for it. Thus, go for\nit after you have understood its functionality and how it can benefit you. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hiring Purchase or simply known as HP is the process of financing a car where the borrower has to make the deposit and monthly installments<\/p>\n","protected":false},"author":1,"featured_media":1445,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[158,159,157],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1444"}],"collection":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/comments?post=1444"}],"version-history":[{"count":2,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1444\/revisions"}],"predecessor-version":[{"id":1447,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1444\/revisions\/1447"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/media\/1445"}],"wp:attachment":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/media?parent=1444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/categories?post=1444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/tags?post=1444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}