1. Personal Finance
  2. Hire Purchase


Hire Purchase is a way to hire the vehicle from the finance company with fixed monthly payments, to spread the purchase price of a vehicle across a longer period. Once all the payments have been made and the finance agreement ends, the vehicle is yours. Find out more about the features and risks of Hire Purchase below and browse our handy frequently asked questions.

What is Hire Purchase (HP)?

Hire Purchase allows you to purchase a vehicle without having to pay the full amount upfront. Instead, you pay a monthly fee to hire the vehicle, which covers the cost of the vehicle as well as interest charges. Ownership of the vehicle is not transferred to you until you’ve made the final payment. We’ve split the process into three stages below to give a clear explanation of Hire Purchase.

  • Key features of HP


    • With contracts up to 60 months long, you can spread the costs to suit you*
    • The car is yours to own at the end of the agreement
    • There are no mileage restrictions, so you decide how far you drive the car
    • You choose how much deposit you put down at the start of the agreement
  • Key Risks of HP


    • Once the agreement comes to an end the car is yours, so any depreciation risk is yours
    • You do not own the car until the final payment is made
    • If you fail to make the payments set out in your agreement, your car could be repossessed, and your credit rating may be adversely affected



1. The Deposit

The deposit is the amount you pay upfront at the start of the agreement, and it will determine how much you need to borrow. The deposit ranges from 0 to 95% of the vehicle price, and some Lexus vehicles come with a deposit contribution which you can put towards the vehicle. The larger your deposit, the less you’ll have to borrow and the smaller your monthly payments will be.

2. The Monthly Payments

Your monthly payments will be fixed throughout your agreement, and they are affected by the size of your deposit. Once you’ve chosen the length (term) of your agreement, the amount will be spread equally across the months.

3. End of Contract

Once you’ve made your final monthly payment, the vehicle is yours to keep. If you get to the end of the agreement and decide you don’t want to keep the vehicle anymore, you can also part exchange it for a new car.


0% to 95%

Choose a term from 24 to 60 months*


*Maximum terms vary according to vehicle model






Your finance agreement will state that the car must be maintained in line with the manufacturer’s guidelines.

Once all payments under your finance agreement are made, ownership automatically passes to you, so any depreciation risk is yours.

You can own the car.


Yes. Ownership passes once all the monthly payments have been paid, or if you settle all applicable payments earlier.

If you decide to part exchange, you will need to settle your finance agreement, you can do this at any time. For regulated finance agreements, an early settlement amount is calculated in accordance with the Consumer Credit (Early Settlement) Regulations 2004.