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Hire Purchase with Porsche Finance

Hire Purchase with Porsche Finance

You may think that Hire Purchase is a little out of date and it isn’t available these days but you would be wrong. Although it is not that popular a way to finance your new vehicle it is still out there and it does have some really good benefits.

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With Porsche Finance a Hire Purchase deal can be more manageable than a personal contract purchase plan and it is well worth considering. Really getting your car with hire purchase is very much like getting a loan or a mortgage. Yes you have to pay down the initial deposit which can be between 10% and 20% of the actual cost of the car. You then pay in agreed monthly instalments until it all paid up sometimes this can range from 1 to 5 years.

I can almost hear you saying that sounds a little bit like other finance deals but you’d be wrong in thinking that. Other deals can demand a final balloon payment and the monthly payments only pay off the interest of the loan. Also with HP you don’t have to return the car at the end it is yours.

HP Advantages and Disadvantages with Porsche Finance.

The main advantage of a Hire Purchase agreement for Porsche finance is that it that it is really simple and you know that at the end of the term of contract the car is yours. Often you will find that the initial deposit is quite low too sometimes it can be as low as 10% of the value of the car. You also have the flexibility of deciding how much you want to pay each month and then choosing the number of monthly payments you want to make. With this you can opt for a shorter term with high payments or the longer term with lower payments. However you need to be aware that the longer the term then the higher amount of interest you will be paying.

One of the disadvantages of Hired Purchase compared with other deals is that over the time you make the monthly payments they will tend to be higher than other deals such as PCP. However don’t forget there is not balloon payment and the car is yours at the end making it more desirable.

As Hired Purchase is no longer that popular then interest rates tend to be higher than for other deals. But if you shop around you can still get a good deal and Porsche Finance certainly offers competitive rates.