Hire Purchase Debt FAQs

Hire Purchase is a type of borrowing, so technically it is a type of loan, but there are one or two differences between it and a secured loan.

Hire Purchase is most commonly used to buy cars; however, some businesses will use it to purchase expensive equipment. As long as you consistently make your repayments, once your payment term has ended, you will own the item outright.

The short answer is that you can cancel an agreement by contacting the lender and returning the item you purchased. However it is worth bearing in mind that you may still owe them money.