Hire Purchase (HP) is a type of vehicle finance where you pay an initial deposit followed by fixed monthly instalments over an agreed term, with ownership transferring to you once all payments, including the option to purchase fee, have been made. In this representative example, the cash price of the vehicle is £22,000.00, with a deposit of £2,200.00, leaving an amount of credit of £19,800.00. The agreement runs over 60 months, with the first payment of £434.45, followed by 58 monthly payments of £434.45 and a final payment of £435.45. The total amount payable is £28,268.00, which includes a total charge for credit of £6,268.00. The agreement has a representative APR of 12.0%, with a fixed interest rate of 6.33%, no finance provider admin fee, and a £1.00 option to purchase fee.