It is normally a fixed cost, fixed period loan of money linked to (or secured) on the purchase of a vehicle.
Early Settlement - A HP agreement can be settled at any time by the customer by paying the balance of finance outstanding and Option to Purchase fee to the lender. The lender may allow the customer a rebate of the interest if the outstanding finance balance is settled before the agreement end date. If it is an HP agreement Regulated under the Consumer Credit Act then the minimum amount of rebate is laid down by law.
At the end of a HP agreement, once all the contracted payments have been made, the customer will usually pay the Option to Purchase fee and take legal title to the goods. However, this is a true option. The customer could return the vehicle to the finance company if the customer so desired (even though the vehicle has effectively been paid for).
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
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Cheaper Van Sales
3B Innovation Centre
Cheaper Van Sales is a trading style of 21st Century Vehicles Limited. Authorised and Regulated by the Financial Conduct Authority, we are a credit broker and not a lender. If you are unhappy with our service we have a complaints procedure, details of which are available on request. You may be able to refer a complaint to the Financial Ombudsman Service (FOS) if you are unhappy with how we deal with your complaint. The FOS website is www.financial-ombudsman.org.uk.
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