What is a Hire Purchase Agreement?
This is a contract where you rent the vehicle from Smart Loans for an agreed period of time e.g. 36 months in return for a set weekly/monthly payment.
During the agreement, you can use the car but the finance company actually owns it. They are the owner, and you are the hirer. At the end of the agreement, the finance company passes ownership of the car back to you, provided you have made all the repayments.
Car Finance is arranged under a Hire Purchase contract with Smart Loans. Hire Purchase is a contract where you rent the vehicle from Smart Loans for an agreed period of time e.g. 36 months in return for a set weekly payment. During the agreement, you can use the car but the finance company (i.e. Smart Loans) actually owns it. Smart Loans is the owner, and you are the hirer. At the end of the agreement, the finance company (i.e. Smart Loans) automatically passes ownership of the car over to you, provided you have made all the payments.
Hire Purchase agreement benefits
Smart Loans provides finance to individuals when no other Bank or Finance House will do so;
It enables customers locked out of the normal credit options to get back on the borrowing ladder, a 2nd chance and a fresh start;
It enables individuals to upgrade their car. While the weekly/monthly payments may be higher than a prime lender, this can be offset due to the lower running and maintenance costs associated with your new car;
A Hire Purchase agreement with Smart Loans helps to repair an individual’s credit history which will help facilitate them access cheaper credit in the future.
What about my Credit History?
Smart Loans are not concerned about what happened with you financially in the past, but believe in giving people a second change and helping them get back on track.
We are solely focused on your current financial circumstances and ensuring you can afford any new loan as we only want to engage in socially responsible lending. In addition, as you repay this loan, this will help to also repair your own credit profile.
What is a Contract for Sale?
Smart Loans provides finance to individuals when no other Bank or Finance House will do so;
It enables customers locked out of the normal credit options to get back on the borrowing ladder, a 2nd chance and a fresh start;
It enables individuals to upgrade their car. While the weekly/monthly payments may be higher than a prime lender, this can be offset due to the lower running and maintenance costs associated with your new car;
A Hire Purchase agreement with Smart Loans helps to repair an individual’s credit history which will help facilitate them access cheaper credit in the future.
How do I get my money?
You can receive your money within 24 hours of all documents being fully completed. After you have signed the loan agreements and we have verified everything, we will make a fast-track payment direct to your bank account.
What happens if I fail to make the payments under the Hire Purchase agreement?
Smart Loans will contact you to assist you in getting your weekly or monthly payments back up to date. However, if payments are not brought up to date, the car may be repossessed and sold to repay the debt/finance outstanding.
Splash