At Together As One, we offer both Car (Asset) Financing and Hire Purchase. While they both lead to car ownership, the mechanics are quite different.
The Deposit Structure
Asset Finance: Typically requires a lower deposit (e.g., 30%) while we finance up to 70% of the value. This is ideal for those with high monthly income but lower initial savings.
Hire Purchase: Requires a 50% deposit. This higher initial commitment often leads to faster approval and a shorter repayment term of 18 months.
The Ownership Document
In Asset Finance, the car is often registered with the financier as a second owner/caveat. In Hire Purchase, you take possession as a hirer with an option to purchase, and the transfer happens automatically once the final installment is cleared.
Which should you choose?
If you have half the value saved up and want to be debt-free quickly, Hire Purchase is your best bet. If you want to keep your cash and prefer longer payment terms (up to 36 months), Asset Finance is the way to go.