Hire Purchase rates
The Hire Purchase Scheme
Hire Purchase rates: available from July 1st until 30th September 2010
- New car 5 year agreements
- New car 4 year agreements
- New car 3 year agreements
- New car 2 year Nippi agreements
- Used car 5 year agreements
- Used car 4 year agreements
- Used car 3 year agreements
- Used car 2 year Nippi agreements
Please note: If you choose to buy a car with a hire purchase agreement, you will need to be receiving the allowance for the full length of your agreement.
| Four Weekly Payment | Amount of credit | Total Payments | APR% |
|---|---|---|---|
| 100.00 | 5,224.00 | £6,500.00 | 9.4% |
| 104.00 | 5,450.94 | £6,760.00 | 9.2% |
| 108.00 | 5,677.88 | £7,020.00 | 9.1% |
| 112.00 | 5,904.82 | £7,280.00 | 8.9% |
| 116.00 | 6,131.75 | £7,540.00 | 8.8% |
| 120.00 | 6,358.69 | £7,800.00 | 8.7% |
| 124.00 | 6,585.63 | £8,060.00 | 8.6% |
| 128.00 | 6,812.56 | £8,320.00 | 8.5% |
| 132.00 | 7,039.50 | £8,580.00 | 8.4% |
| 136.00 | 7,266.44 | £8,840.00 | 8.3% |
| 140.00 | 7,493.38 | £9,100.00 | 8.3% |
| 144.00 | 7,720.31 | £9,360.00 | 8.2% |
| 148.00 | 7,947.25 | £9,620.00 | 8.1% |
| 152.00 | 8,174.19 | £9,880.00 | 8.0% |
| 156.00 | 8,401.12 | £10,140.00 | 8.0% |
| 160.00 | 8,628.06 | £10,400.00 | 7.9% |
| 164.00 | 8,855.00 | £10,660.00 | 7.9% |
| 168.00 | 9,081.93 | £10,920.00 | 7.8% |
| 172.00 | 9,308.87 | £11,180.00 | 7.7% |
| 176.00 | 9,535.81 | £11,440.00 | 7.7% |
| 180.00 | 9,762.75 | £11,700.00 | 7.7% |
| 184.00 | 9,989.68 | £11,960.00 | 7.6% |
| 188.00 | 10,216.62 | £12,220.00 | 7.6% |
| 192.00 | 10,443.56 | £12,480.00 | 7.5% |
| 196.00 | 10,670.49 | £12,740.00 | 7.5% |
| 199.40 | 10,863.39 | £12,961.00 | 7.4% |
| 202.00 | 11,010.90 | £13,130.00 | 7.4% |
| 206.00 | 11,237.84 | £13,390.00 | 7.4% |
| 210.00 | 11,464.77 | £13,650.00 | 7.4% |
| 214.00 | 11,691.71 | £13,910.00 | 7.3% |
| 218.00 | 11,918.65 | £14,170.00 | 7.3% |
| 220.00 | 12,032.12 | £14,300.00 | 7.3% |
| 222.00 | 12,145.59 | £14,430.00 | 7.3% |
| 222.60 | 12,179.63 | £14,469.00 | 7.3% |
Typical Example: "on the road" cost of your car is £11,000. If you elect to use your total four-weekly allowance (£199.40), the Amount of Credit you are eligible for is £10863.39 (refer table above). Your Advance Payment is then £136.61 (£11,000 - £10863.39), and your payments over 5 years = 65 x £199.40 = £12,961.00 APR 7.4%
| Four Weekly Payment | Amount of credit | Total Payments | APR% |
|---|---|---|---|
| 100.00 | 4219.68 | £5200.00 | 11.2% |
| 104.00 | 4406.17 | £5408.00 | 11.2% |
| 108.00 | 4592.66 | £5616.00 | 10.8% |
| 112.00 | 4779.15 | £5824.00 | 10.6% |
| 116.00 | 4965.63 | £6032.00 | 10.4% |
| 120.00 | 5152.12 | £6240.00 | 10.2% |
| 124.00 | 5338.61 | £6448.00 | 10.1% |
| 128.00 | 5525.10 | £6656.00 | 9.9% |
| 132.00 | 5711.58 | £6864.00 | 9.8% |
| 136.00 | 5898.07 | £7072.00 | 9.6% |
| 140.00 | 6084.56 | £7280.00 | 9.5% |
| 144.00 | 6271.05 | £7488.00 | 9.4% |
| 148.00 | 6457.54 | £7696.00 | 9.3% |
| 152.00 | 6644.02 | £7904.00 | 9.2% |
| 156.00 | 6830.51 | £8112.00 | 9.1% |
| 160.00 | 7017.00 | £8320.00 | 9.0% |
| 164.00 | 7203.49 | £8528.00 | 8.9% |
| 168.00 | 7389.97 | £8736.00 | 8.8% |
| 172.00 | 7576.46 | £8944.00 | 8.8% |
| 176.00 | 7762.95 | £9152.00 | 8.7% |
| 180.00 | 7949.44 | £9360.00 | 8.6% |
| 184.00 | 8135.93 | £9568.00 | 8.5% |
| 188.00 | 8322.41 | £9776.00 | 8.5% |
| 192.00 | 8508.90 | £9984.00 | 8.4% |
| 196.00 | 8695.39 | £10192.00 | 8.4% |
| 199.40 | 8853.90 | £10368.80 | 8.3% |
| 202.00 | 8975.12 | £10504.00 | 8.3% |
| 206.00 | 9161.61 | £10712.00 | 8.2% |
| 210.00 | 9348.10 | £10920.00 | 8.2% |
| 214.00 | 9534.59 | £11128.00 | 8.1% |
| 218.00 | 9721.07 | £11336.00 | 8.1% |
| 220.00 | 9814.32 | £11440.00 | 8.0% |
| 222.00 | 9907.56 | £11544.00 | 8.0% |
| 222.60 | 9935.53 | £11575.20 | 8.0% |
Typical Example: "on the road" cost of your car is £9,000. If you elect to use your total four-weekly allowance (£199.40), the Amount of Credit you are eligible for is £8853.90 (refer table above). Your Advance Payment is then £146.10 (£9,000 - £8853.90), and your payments over 4 years = 52 x £199.40 = £10368.80 APR 8.3%
| Four Weekly Payment | Amount of credit | Total Payments | APR% |
|---|---|---|---|
| 100.00 | 3412.94 | £3900.00 | 9.3% |
| 104.00 | 3556.81 | £4056.00 | 9.1% |
| 108.00 | 3700.68 | £4212.00 | 9.0% |
| 112.00 | 3844.55 | £4368.00 | 8.9% |
| 116.00 | 3988.42 | £4524.00 | 8.7% |
| 120.00 | 4132.30 | £4680.00 | 8.6% |
| 124.00 | 4276.17 | £4836.00 | 8.5% |
| 128.00 | 4420.04 | £4992.00 | 8.4% |
| 132.00 | 4563.91 | £5148.00 | 8.3% |
| 136.00 | 4707.78 | £5304.00 | 8.2% |
| 140.00 | 4851.65 | £5460.00 | 8.2% |
| 144.00 | 4995.53 | £5616.00 | 8.1% |
| 148.00 | 5139.40 | £5772.00 | 8.0% |
| 152.00 | 5283.27 | £5928.00 | 7.9% |
| 156.00 | 5427.14 | £6084.00 | 7.9% |
| 160.00 | 5571.01 | £6240.00 | 7.8% |
| 164.00 | 5714.88 | £6396.00 | 7.8% |
| 168.00 | 5858.76 | £6552.00 | 7.7% |
| 172.00 | 6002.63 | £6708.00 | 7.7% |
| 176.00 | 6146.50 | £6864.00 | 7.6% |
| 180.00 | 6290.37 | £7020.00 | 7.6% |
| 184.00 | 6434.24 | £7176.00 | 7.5% |
| 188.00 | 6578.11 | £7332.00 | 7.5% |
| 192.00 | 6721.98 | £7488.00 | 7.4% |
| 196.00 | 6865.86 | £7644.00 | 7.4% |
| 199.40 | 6988.15 | £7776.60 | 7.3% |
| 202.00 | 7081.66 | £7878.00 | 7.3% |
| 206.00 | 7225.54 | £8034.00 | 7.3% |
| 210.00 | 7369.41 | £8190.00 | 7.3% |
| 214.00 | 7513.28 | £8346.00 | 7.2% |
| 218.00 | 7657.15 | £8502.00 | 7.2% |
| 220.00 | 7729.09 | £8580.00 | 7.2% |
| 222.00 | 7801.02 | £8658.00 | 7.2% |
| 222.60 | 7822.60 | £8681.40 | 7.1% |
Typical Example: "on the road" cost of your car is £8,000. If you elect to use your total four-weekly allowance (£199.40), the Amount of Credit you are eligible for is £6988.15 (refer table above). Your Advance Payment is then £1011.85 (£8000 - £6988.15), and your payments over 3 years = 39 x £199.40 = £7776.60 APR 7.3%
| Four Weekly Payment | Amount of credit | Total Payments | APR% |
|---|---|---|---|
| 100.00 | 2367.83 | £2600.00 | 9.6% |
| 104.00 | 2466.56 | £2704.00 | 9.4% |
| 108.00 | 2565.28 | £2808.00 | 9.3% |
| 112.00 | 2664.00 | £2912.00 | 9.1% |
| 116.00 | 2762.72 | £3016.00 | 9.0% |
| 120.00 | 2861.45 | £3120.00 | 8.8% |
| 124.00 | 2960.17 | £3224.00 | 8.7% |
| 128.00 | 3058.89 | £3328.00 | 8.6% |
| 132.00 | 3157.62 | £3432.00 | 8.5% |
| 136.00 | 3256.34 | £3536.00 | 8.4% |
| 140.00 | 3355.06 | £3640.00 | 8.3% |
| 144.00 | 3453.78 | £3744.00 | 8.2% |
| 148.00 | 3552.51 | £3848.00 | 8.1% |
| 152.00 | 3651.23 | £3952.00 | 8.0% |
| 156.00 | 3749.95 | £4056.00 | 8.0% |
| 160.00 | 3848.68 | £4160.00 | 7.9% |
| 164.00 | 3947.40 | £4264.00 | 7.8% |
| 168.00 | 4046.12 | £4368.00 | 7.8% |
| 172.00 | 4144.85 | £4472.00 | 7.7% |
| 176.00 | 4243.57 | £4576.00 | 7.6% |
| 180.00 | 4342.29 | £4680.00 | 7.6% |
| 184.00 | 4441.01 | £4784.00 | 7.5% |
| 188.00 | 4539.74 | £4888.00 | 7.5% |
| 192.00 | 4638.46 | £4992.00 | 7.4% |
| 196.00 | 4737.18 | £5096.00 | 7.4% |
| 199.40 | 4821.10 | £5184.40 | 7.4% |
| 202.00 | 4885.27 | £5252.00 | 7.3% |
| 206.00 | 4983.99 | £5356.00 | 7.3% |
| 210.00 | 5082.71 | £5460.00 | 7.2% |
| 214.00 | 5181.44 | £5564.00 | 7.2% |
| 218.00 | 5280.16 | £5668.00 | 7.2% |
| 220.00 | 5329.52 | £5720.00 | 7.1% |
| 222.00 | 5378.88 | £5772.00 | 7.1% |
| 222.60 | 5393.69 | £5787.60 | 7.1% |
Typical Example: "on the road" cost of your car is £5,000. If you elect to use your total four-weekly allowance (£199.40), the Amount of Credit you are eligible for is £4821.10 (refer table above). Your Advance Payment is then £178.90 (£5000 - £4821.10), and your payments over 2 years = 26 x £199.40 = £5184.40 APR 7.4% .
| Four Weekly Payment | Amount of credit | Total Payments | APR% |
|---|---|---|---|
| 100.00 | 4,869.42 | £6,500.00 | 12.7% |
| 104.00 | 5,096.35 | £6,760.00 | 12.4% |
| 108.00 | 5,323.29 | £7,020.00 | 12.1% |
| 112.00 | 5,550.23 | £7,280.00 | 11.9% |
| 116.00 | 5,777.16 | £7,540.00 | 11.6% |
| 120.00 | 6,004.10 | £7,800.00 | 11.4% |
| 124.00 | 6,231.04 | £8,060.00 | 11.2% |
| 128.00 | 6,457.97 | £8,320.00 | 11.0% |
| 132.00 | 6,684.91 | £8,580.00 | 10.8% |
| 136.00 | 6,911.85 | £8,840.00 | 10.7% |
| 140.00 | 7,138.79 | £9,100.00 | 10.5% |
| 144.00 | 7,365.72 | £9,360.00 | 10.4% |
| 148.00 | 7,592.66 | £9,620.00 | 10.2% |
| 152.00 | 7,819.60 | £9,880.00 | 10.1% |
| 156.00 | 8,046.53 | £10,140.00 | 10.0% |
| 160.00 | 8,273.47 | £10,400.00 | 9.9% |
| 164.00 | 8,500.41 | £10,660.00 | 9.7% |
| 168.00 | 8,727.35 | £10,920.00 | 9.6% |
| 172.00 | 8,954.28 | £11,180.00 | 9.5% |
| 176.00 | 9,181.22 | £11,440.00 | 9.4% |
| 180.00 | 9,408.16 | £11,700.00 | 9.3% |
| 184.00 | 9,635.09 | £11,960.00 | 9.3% |
| 188.00 | 9,862.03 | £12,220.00 | 9.2% |
| 192.00 | 10,088.97 | £12,480.00 | 9.1% |
| 196.00 | 10,315.90 | £12,740.00 | 9.0% |
| 199.40 | 10,508.80 | £12,961.00 | 9.0% |
| 202.00 | 10,656.31 | £13,130.00 | 8.9% |
| 206.00 | 10,883.25 | £13,390.00 | 8.9% |
| 210.00 | 11,110.18 | £13,650.00 | 8.8% |
| 214.00 | 11,337.12 | £13,910.00 | 8.7% |
| 218.00 | 11,564.06 | £14,170.00 | 8.7% |
| 220.00 | 11,677.53 | £14,300.00 | 8.6% |
| 222.00 | 11,791.00 | £14,430.00 | 8.6% |
| 222.60 | 11,825.04 | £14,469.00 | 8.6% |
Typical Example: "on the road" cost of your car is £11,000. If you elect to use your total four-weekly allowance (£199.40), the Amount of Credit you are eligible for is £10508.80 (refer table above). Your Advance Payment is then £491.2 (£11,000 - £10508.80), and your payments over 5 years = 65 x £199.40 = £10508.80 APR 9.0%
| Four Weekly Payment | Amount of credit | Total Payments | APR% |
|---|---|---|---|
| 100.00 | 4,226.68 | £5,200.00 | 11.1% |
| 104.00 | 4,413.16 | £5,408.00 | 10.9% |
| 108.00 | 4,599.65 | £5,616.00 | 10.7% |
| 112.00 | 4,786.14 | £5,824.00 | 10.5% |
| 116.00 | 4,972.63 | £6,032.00 | 10.3% |
| 120.00 | 5,159.11 | £6,240.00 | 10.1% |
| 124.00 | 5,345.60 | £6,448.00 | 10.1% |
| 128.00 | 5,532.09 | £6,656.00 | 9.8% |
| 132.00 | 5,718.58 | £6,864.00 | 9.7% |
| 136.00 | 5,905.07 | £7,072.00 | 9.6% |
| 140.00 | 6,091.55 | £7,280.00 | 9.5% |
| 144.00 | 6,278.04 | £7,488.00 | 9.3% |
| 148.00 | 6,464.53 | £7,696.00 | 9.2% |
| 152.00 | 6,651.02 | £7,904.00 | 9.1% |
| 156.00 | 6,837.50 | £8,112.00 | 9.0% |
| 160.00 | 7,023.99 | £8,320.00 | 8.9% |
| 164.00 | 7,210.48 | £8,528.00 | 8.9% |
| 168.00 | 7,396.97 | £8,736.00 | 8.8% |
| 172.00 | 7,583.46 | £8,944.00 | 8.7% |
| 176.00 | 7,769.94 | £9,152.00 | 8.6% |
| 180.00 | 7,956.43 | £9,360.00 | 8.6% |
| 184.00 | 8,142.92 | £9,568.00 | 8.5% |
| 188.00 | 8,329.41 | £9,776.00 | 8.4% |
| 192.00 | 8,515.90 | £9,984.00 | 8.4% |
| 196.00 | 8,702.38 | £10,192.00 | 8.3% |
| 199.40 | 8,860.90 | £10,368.80 | 8.3% |
| 202.00 | 8,982.11 | £10,504.00 | 8.2% |
| 206.00 | 9,168.60 | £10,712.00 | 8.2% |
| 210.00 | 9,355.09 | £10,920.00 | 8.1% |
| 214.00 | 9,541.58 | £11,128.00 | 8.1% |
| 218.00 | 9,728.07 | £11,336.00 | 8.0% |
| 220.00 | 9,821.31 | £11,440.00 | 8.0% |
| 222.00 | 9,914.55 | £11,544.00 | 8.0% |
| 222.60 | 9,942.53 | £11,575.20 | 8.0% |
Typical Example: "on the road" cost of your car is £9,000. If you elect to use your total four-weekly allowance (£199.40), the Amount of Credit you are eligible for is £8860.90 (refer table above). Your Advance Payment is then £139.10 (£9000 - £8860.90), and your payments over 4 years = 52 x £199.40 = £10368.80 APR 8.3%
| Four Weekly Payment | Amount of credit | Total Payments | APR% |
|---|---|---|---|
| 100.00 | 3,370.14 | £3,900.00 | 10.2% |
| 104.00 | 3,514.01 | £4,056.00 | 10.0% |
| 108.00 | 3,657.88 | £4,212.00 | 9.9% |
| 112.00 | 3,801.75 | £4,368.00 | 9.7% |
| 116.00 | 3,945.62 | £4,524.00 | 9.5% |
| 120.00 | 4,089.49 | £4,680.00 | 9.4% |
| 124.00 | 4,233.37 | £4,836.00 | 9.3% |
| 128.00 | 4,377.24 | £4,992.00 | 9.1% |
| 132.00 | 4,521.11 | £5,148.00 | 9.0% |
| 136.00 | 4,664.98 | £5,304.00 | 8.9% |
| 140.00 | 4,808.85 | £5,460.00 | 8.8% |
| 144.00 | 4,952.72 | £5,616.00 | 8.7% |
| 148.00 | 5,096.60 | £5,772.00 | 8.6% |
| 152.00 | 5,240.47 | £5,928.00 | 8.5% |
| 156.00 | 5,384.34 | £6,084.00 | 8.5% |
| 160.00 | 5,528.21 | £6,240.00 | 8.4% |
| 164.00 | 5,672.08 | £6,396.00 | 8.3% |
| 168.00 | 5,815.95 | £6,552.00 | 8.2% |
| 172.00 | 5,959.82 | £6,708.00 | 8.2% |
| 176.00 | 6,103.70 | £6,864.00 | 8.1% |
| 180.00 | 6,247.57 | £7,020.00 | 8.1% |
| 184.00 | 6,391.44 | £7,176.00 | 8.0% |
| 188.00 | 6,535.31 | £7,332.00 | 7.9% |
| 192.00 | 6,679.18 | £7,488.00 | 7.9% |
| 196.00 | 6,823.05 | £7,644.00 | 7.8% |
| 199.40 | 6,945.35 | £7,776.60 | 7.8% |
| 202.00 | 7,038.86 | £7,878.00 | 7.8% |
| 206.00 | 7,182.73 | £8,034.00 | 7.7% |
| 210.00 | 7,326.60 | £8,190.00 | 7.7% |
| 214.00 | 7,470.48 | £8,346.00 | 7.6% |
| 218.00 | 7,614.35 | £8,502.00 | 7.6% |
| 220.00 | 7,686.28 | £8,580.00 | 7.6% |
| 222.00 | 7,758.22 | £8,658.00 | 7.6% |
| 222.60 | 7,779.80 | £8,681.40 | 7.5% |
Typical Example: 'on the road' cost of your car is £7,000. If you elect to use your total four-weekly allowance (£199.40), the Amount of Credit you are eligible for is £6945.35 (refer table above). Your Advance Payment is then £54.65 (£7000 - £6945.35), and your payments over 3 years = 39 x £199.40 = £7776.60 APR 7.8%
How Hire Purchase works
The amount of money you can borrow to buy a car is determined by the amount of your Higher Rate Mobility Component of Disability Living Allowance or War Pensioners´ Mobility Supplement. Your repayments cannot exceed the four-weekly amount, but they can be less than this. The minimum weekly repayment is £25.
If you chose HP, you negotiate the price of the car with your Motability dealer. HP finance for new and used cars can be taken over 3, 4 or 5 years.
If you plan to buy a used car it must be less than 3 years old and have driven less than 45,000 miles (unless you are buying your current Motability car). The maximum age of a car at the end of a HP agreement can be no more than 7 years old i.e. if the car you plan to buy is 3 years old, the maximum finance you can apply for is 4 years.
By agreeing to the HP Scheme you are directing the Department for Work and Pensions (DWP) or the Service Personnel and Veterans Agency (SPVA) to make the repayments on your behalf, to Motability Operations, for the period you want to take the loan.
Repayments will be made by direct deduction from your DLA or WPMS allowance at the rate set out in the tables on the following pages and will be payable at four weekly intervals.
If at any time after the agreement has started your entitlements to the HRMC of DLA or WPMS stop, you are still required to make the regular payments. However, Motability Operations may decide to terminate the hire purchase agreement.
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