Palmers in Hemel Hempstead, Hertfordshire. Authorised Alfa Romeo dealership

Close up image of Red Alfa Grill and Lights

Personal Finance

Hire Purchase

The features, the plus points

Hire Purchase is a simple way of spreading the cost of your new car and is best suited to people who have built up a deposit to finance a proportion of that cost. In essence Hire Purchase allows you to spread the cost of your car over a finance term of between one to five years. The amount you pay each month will reflect your chosen agreement length and the amount of your deposit – this can be the value of your part exchange or a cash payment – whatever suits you best.

Hire Purchase may match your needs if you intend to keep your car for some time after the agreement term, if you have put in a large initial deposit or if you would like to spread your repayments over a long period up to 5 years.

Is Hire Purchase my best option?

Hire Purchase cannot match the flexibility of Alfa Romeo Preferenza. It is a straightforward arrangement but does not give you as many options. Vitally, it cannot protect you from depreciation in the same way, as it does not feature a guaranteed future value.