An HP vehicle finance agreement typically runs for 2 to 5 years and is one of the most common methods of paying for your vehicle.
At the beginning of the agreement you decide the amount of the deposit you wish to pay and the term of the payment plan. Based on your credit rating, the lender will then offer you an interest rate and a fixed monthly payment plan that will run for the contract term.
At the end of the contract term and assuming that everything has been paid in accordance with the agreement, the lender will transfer the title of the vehicle and you will become the legal owner.
HP lenders are often able to offer more attractive terms and conditions because they retain the ownership of the vehicle until you make your final payment.