Hero Car Finance

HP Car Finance

Hire Purchase is the most straightforward way to finance a car: fixed monthly payments across the term, and the car is yours once the final payment is made. Hero arranges HP agreements with terms up to 60 months (5 years), which keeps the monthly payment manageable even on a bigger budget. Seeing what you can afford starts with a soft search, so there is no impact on your credit score while you look at your options.

What is HP car finance?

HP stands for Hire Purchase. You pay a deposit if you choose to put one down, then fixed monthly payments across an agreed term. During the agreement the finance company owns the car and you are hiring it, which is where the name comes from. When the final payment is made, along with a small fee known as the option to purchase fee, ownership transfers to you. The car is yours outright. HP is the simpler of the two main types of car finance. There is no large payment waiting at the end, no annual mileage limit to manage, and no decision to make when the term finishes. The loan covers the car, the payments clear the loan, and the car ends up owned.

How HP works at Hero

Hero searches a panel of lenders to find the HP agreement that fits your situation, then supplies the car from hundreds of vehicles in stock at Oakwood Motor Company group across the Bury and Chorley showrooms, with delivery available nationwide. The finance and the car come from the same place, so there is no gap between getting approved and finding a dealer who will work with your agreement.

  • See what you can afford with a soft search. No impact on your credit score.
  • Complete the application: personal details, employment, income.
  • Hero searches its panel for the right HP agreement.
  • If approved in principle, you see the shape of the offer and choose your car from the stock.
  • If you go ahead, the lender may run a hard search before issuing documents on that vehicle.
  • Sign, drive away, and pay fixed monthly amounts until the car is yours.

Terms up to 60 months to keep payments manageable

Hero arranges HP terms up to 60 months (5 years), giving you room to spread the cost and bring the monthly payment down. The trade-off is worth understanding: a longer term means more months of interest, so the total amount paid over the agreement is higher. The right term is the one where the monthly payment sits comfortably inside your budget without stretching the agreement longer than it needs to be. The calculator shows what different terms do to the monthly figure, so you can find the balance before you apply.

Is HP right for you?

HP suits you if

  • You want to own the car at the end without a large final payment.
  • You drive high or unpredictable mileage, since HP has no mileage limit.
  • You prefer a simple agreement with nothing to decide at the end.
  • You plan to keep the car for years rather than change regularly.

PCP might suit you better if

If you want lower monthly payments instead, PCP car finance works differently and is worth comparing.

  • You want lower monthly payments and are happy with a final balloon payment.
  • You like changing your car every few years.

HP with bad credit

HP is often the easier route for applicants with an imperfect credit file, because the structure is simple and the lender's position is secured against the car throughout. Hero's panel includes lenders who specialise in bad credit, so a CCJ, a default, or a past refusal does not close the door. The eligibility check is the fastest way to find out where you stand, with no footprint on your credit file.

Frequently asked questions

Not until the final payment. During the agreement the lender owns the car and you are hiring it. Once the last payment and the option to purchase fee are made, ownership transfers to you. This is also why the car cannot be sold mid-agreement without settling the finance first.

Yes. You can request a settlement figure from the lender at any point and clear the agreement early. Settling early usually reduces the total interest paid.

No. No deposit HP agreements are available, including for bad credit applicants. A deposit reduces the amount borrowed and usually improves the rate, but it is optional, and part exchanging your current car can act as the deposit instead.

Contact the lender as early as possible, ideally before the payment is missed. Lenders have options when they know in advance. Missed payments are recorded on your credit file and, because the lender owns the car during the agreement, sustained arrears can put the vehicle at risk. The earlier the conversation, the more options stay open.

No. Unlike PCP, HP agreements have no annual mileage restriction. You can drive as much as you like without excess mileage charges, which is one of the main reasons high-mileage drivers choose HP.

Ready to get started?

See what you can afford with a soft search, no impact on your credit score, or run your numbers through the calculator first to see what terms up to 60 months do to your monthly payment.

See what you can afford