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HP Car Finance Deals

Choose a new or used car on a Hire Purchase and Balloon HP Agreement.

What is a Hire Purchase car finance deal?

Hire Purchase with a balloon payment is very similar to a standard Hire Purchase agreement, but like a PCP a certain amount of the loan is deferred until the end as a final “balloon” payment to reduce the monthly payments.


For cars with strong residual values, the final balloon can be more flexible than a PCP, which can further reduce monthly payments. The balloon amount is agreed in advance and fixed, but unlike a PCP there is no Guaranteed Minimum Future Value and the final payment has to be settled at the end of the agreement if you want to take ownership of the vehicle. The alternatives are part exchanging or refinancing the vehicle.

Why choose HP car finance?

HP Balloon agreements are ideal for those purchasing collectable or classic cars with strong residual values such as limited production Porsche and Ferrari models. Unlike a PCP, there is no age limit on the vehicle at the end of the agreement.

How does a Hire Purchase and Balloon Payment deal work?

You make an initial deposit – of your choice – and pay for the vehicle monthly until the end of the agreement.


At the end of the agreement, you will need to pay the balloon payment to take ownership of the vehicle, refinance the outstanding balance or trade the car in.

What are the benefits of a Hire Purchase and Balloon deal?

  • Lower monthly payments than equivalent HP

  • More flexible final payment than a PCP

  • A simple way to finance a vehicle purchase

  • Flexible deposit options at the start

  • A choice of agreement length based on your own financial circumstances

  • Fixed monthly repayments

What should I consider before agreeing a HP + B deal?

Once all of the monthly payments have been made, you will need to pay the final balloon payment. Once you have paid this you become the owner of the vehicle. The car can also be part exchanged, with any remaining equity going towards the next vehicle once the finance has been settled.

You also have options to settle the finance agreement part way through the term of the agreement, your finance provider can give you specific details at any time.

Commonly asked questions

HP + Balloon details

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Require further information or a quotation for a car funding option?

Looking for a specific Make or Model of car to be sourced?

We can introduce you to a limited number of lenders and their finance products. We are not an independent financial advisor; we will provide details of products available, but no advice or recommendation will be made. You must decide whether the finance product is right for you. We do not charge you a fee for our services. Whichever lender we introduce you to, we will typically receive commission from them (either a fixed fee or a fixed percentage of the amount you borrow). The commission arrangements we have in place vary, depending on how you are introduced to us and with which lender we are able to place you with. When you are introduced to us by a motor retailer, we may be paid a flat fee, regardless of the interest rate you pay, finance product, length of agreement, or amount of finance. We may also be paid a fixed rate of commission, calculated as a percentage of the amount of finance. We will always introduce you to the most suitable finance lender offering you the most appropriate finance product for your needs, and at the best interest rate possible (which is determined by the finance lender) based on the commission we are paid and by your credit profile. The amount of commission we receive and pay, and your credit profile, will impact the amounts you pay under your credit agreement. In both cases, we will pass a proportion of the commission paid to us to the motor retailer that introduced you to us. We may also be paid, and pay the motor retailer, higher commission depending on the type and age of vehicle or based on the finance product you are provided with. In these cases, commission levels vary based on the levels of work required to be undertaken by us and the motor retailer. Whilst we may receive higher levels of commission based on the finance product you are provided with, this is always based on the level of work required in relation to the particular product and we will not seek to secure finance products that are not suitable for your needs.

We are a credit broker and not a lender. Niche Vehicle Funding is a trading style of Niche Automotive. Our VAT registration number is 847687858, Niche Automotive is authorised and regulated by the Financial Conduct Authority under firm reference number 650172. If you would like to know how we handle complaints, please ask for a copy of our complaints handling procedure, or click here. You can also find information about referring a complaint to the Financial Ombudsman Service (FOS) at