Finance

The True Cost of HP Finance: What is it and How Much Do You Really Pay?

Published

3 months ago

February 23, 2026

Getting a new car can be exciting, but it is a big purchase, and most people do require some form of car finance agreement. There are a number of options when it comes to financing a car, such as PCP (Personal Contract Purchase) or a bank loan, but HP (Hire Purchase) is one of the most popular.

If you’re considering entering into a HP agreement, you need to have a good understanding of what it is, how it works, and what you’ll actually pay so you can work out if it really is the best option for you. So, here is everything you need to know about HP car finance.

What is Hire Purchase Car Finance?

With Hire Purchasing, you usually put down a deposit upfront, then pay the remainder of the car’s cost in monthly installments over an agreed period of time. The length of this agreement depends on factors such as how much you repay each month and the cost of the car.

HP is a popular option because although the monthly repayments are typically higher than PCP, once you’ve paid the car off you become the legal owner and you’re free to do with it as you wish. There’s also no annual mileage limits or charges for damage to the car (beyond everyday wear and tear) like there is with PCP.

People usually opt for PCP over HP if they need to keep monthly costs lower and don’t want to own the car at the end of the finance agreement.

Factors that Affect the Cost of Hire Purchasing

Deposit

Most deposits are around 10% of the car’s total value, but they can be higher. Some dealerships will also offer no deposit HP deals, however this does hike the price of your monthly repayments.

For example, if you’re looking to purchase a car which costs £10,000 and you put down a 10% deposit (£1,000), you will be left with £9,000 to pay via the HP agreement.

A higher deposit can be beneficial as it will lower the amount you need to borrow and reduce the total amount of interest you pay over the course of the loan.

Interest Rates

The biggest downside to finance agreements is that the total purchase price of the car will be higher overall than if you were to buy it outright. This is because of interest rates.

The rate you are offered will depend on a number of factors, including your credit score, whether the rate is fixed or variable (whether or not payments remain the same throughout the term), and the APR on your HP finance (how much interest lenders charge you for borrowing the money).

For example, if a £10,000 HP agreement has a fixed APR of 7% and your contract is over 48 months, you will pay roughly £1,500 extra in interest.

Fees

HP agreements may include certain fees, such as agreement fees, early settlement fees, and documentation fees. These can vary significantly depending on the lender so it’s important to be aware of them and factor these into your decision.

Repayment Schedules

The amount you pay each month will in part depend on the repayment schedule of your Hire Purchase contract. Your agreement will include monthly payments over a fixed term, which is usually 24, 36, 48, or 60 months.

The longer your agreement lasts, the lower your monthly payments will be. However it’s important to note that a longer term means you will end up paying more in total interest.

Value of the Car

A car’s value depreciates over time, meaning it will continue to lose its value as time goes on. By the end of your term, it’s likely that your car will be worth considerably less than when you bought it. And when you consider the fact you paid interest on top of the car’s value, you may feel that you’ve overpaid in comparison to the car’s current market value. That being said, this may not be much of an issue if you’re planning on keeping the car once you’ve paid it off.

Should You Finance a Car Using HP?

Whether or not you should finance a car under a Hire Purchase agreement is entirely down to personal preference and your individual financial situation. As with everything, there are pros and cons. It can be a great option if you’re looking to spread the cost of a car over time with manageable monthly payments, however the total cost of the car will be higher than its original price due to interest and any additional fees.

Charity

Local insurance brokers help raise over £1,300 for Bluebirds Foundation

Published

2 weeks ago

May 20, 2026

Sarah Jane Absalom

The Haverfordwest County AFC Bluebirds Foundation is celebrating a £1,300 boost this month thanks to local insurance brokers Lloyd & Whyte Community Broking.

A recent fundraising day raised £653.64, which was fund matched by the insurance broker’s parent company, the Benefact Group, doubling the amount to over £1,300.

Lloyd & Whyte Community Broking St Clears are sponsors of Haverfordwest County AFC
which includes supporting the charitable arm of the club, Bluebirds Foundation. The Foundation focuses on the prevention of poverty and strengthens the bond between the
football club and local people, including launching junior supporter clubs and community
brunch clubs.
Harry Thomas, aTrustee at Bluebirds Foundation said:
“We are extremely grateful to Lloyd & Whyte for further enhancing the funds raised at
our Foundation Fundraiser, held at the Ogi Bridge Meadow in collaboration with
Haverfordwest County AFC and we look forward to working closely with Lloyd & White again at future events.”
Leyla Phillips stated:
“Events like this show what community is all about. I think it’s great what the
Bluebirds foundation are doing locally for Pembrokeshire, and it was a pleasure to be
a part of it. Being part of Lloyd & Whyte Community Broking and the Benefact Group
made it even more special as we are proud to match all funds that were raised on the day which I’m sure will be a nice addition for the foundation, to enable them to carry
on doing great initiatives within our community.’’
The funday event saw bouncy castles, cake stands, a raffle, shirt swap stand, kick-up
competitions, and inflatable goal, alongside the normal match day activities, all providing
hours of fun for spectators and supporters.

And to top it all, Haverfordwest County AFC won 6-0 on the day against Llanelli Town AFC.

Education

£1,500 cash bursary announced for aspiring local youngsters

Published

2 weeks ago

May 20, 2026

Sarah Jane Absalom

FOLLOWING its previous success, Ceredigion Youth Service is fortunate to accept another opportunity provided by West Wales Holiday Cottages to support young people with a cash bursary this year.

The purpose of the bursary is to provide young people aged between 11 and 25 with the chance to receive £1,500 to help with their future aspirations. The successful applicant(s) will be chosen by Ceredigion Youth Forum, which is a panel made up of young people from Ceredigion.

Gwion Bowen, Senior Support Officer Participation, said: “We are very grateful to West Wales Holiday Cottages for providing us with this opportunity for young people in Ceredigion for the ninth year in succession. Like ourselves, West Wales Holiday Cottages recognise that many young people living in Ceredigion may experience difficulties in accessing training, support and social activities due to socio-economic issues. The bursary was extremely successful last year, with a young person gaining financial support to help them with their mobile beauty start up business.”

Councillor Wyn Thomas, Cabinet for Schools and Lifelong Learning, said: “I would like to encourage anyone aged between 11 and 25 who needs financial support to reach their goals to consider this fantastic opportunity. As with previous years, I hope that the bursary is a success again this year, and that it will benefit young people in Ceredigion.”

Lisa Stopher, Managing Director at West Wales Holiday Cottages said, “West Wales Holiday Cottages are delighted to be supporting the bursary once again in partnership with Ceredigion Youth Service. We recognise that many young people can face barriers when accessing opportunities, training and resources, and we hope this bursary will continue to make a positive difference by giving young people the support they need to pursue their goals and aspirations.”

Do you need financial support to reach your goals? Would you benefit from having financial support to help you with training or equipment that is required for your chosen vocation? Are you looking for support to start your own enterprise? Are you a member of a community group and looking for financial support to purchase resources or equipment?

The closing date for applications is midnight on 19 July 2026. If you’re interested, contact Gwion Bowen on 07790 812939 or e-mail [email protected] for an application form.

Education

Ashmole & Co fund future accountants with financial donation to primary school

Published

2 weeks ago

May 20, 2026

Sarah Jane Absalom

CARMARTHENSHIRE’S would-be mathematicians are being given a major boost in their careers thanks to an Ashmole & Co donation to Ysgol Llandybie Primary School.

The donation, funded by the company’s Ammanford office, will help with the annual purchase of the online MyMaths resource which uses the online resource to help pupils and parents with the teaching of maths at home as well as allowing teachers to set tasks and provide them with tutorials to show them the mathematical concepts being taught.
The programme can assist in all areas of mathematics from shape to space, and from data to financial literacy.

Laura Craddock, Partner in Ashmole & Co’s Ammanford office, said, “We are always keen
to offer our support locally. We are more than happy to help fund the online resource
MyMaths to help train the local accountants of the future from a young age.”

Llandybie Primary School Head Teacher, Rhian Pritchard, said, “We are keen to continue
using online resources to enhance our pupils’ learning experience but they come at an extra
cost. We are grateful to Ashmole and Co for the donation which will enable us to continue
the provision of online maths learning.”