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Paying off Hire Purchase Early

1 reply

Andrea18 · 05/08/2025 12:49

I have just bought a new car on hire purchase as I got help with the deposit and it worked out cheaper than paying actual cash which I have in the bank.

Should I call the finance company to pay off the full amount before the first payment is due or should I wait until the first payment by direct debit it taken then make an extra payment of £1 less than the amount due to avoid any penalties for settling the HP early.?

Or is there a better way of doing this to avoid paying interest and any penalties?

OP posts:
mumofsixfluffs · 05/08/2025 20:51

You should get a rebate of interest you would have been charged over the term if you settle early. There should not be any penalties

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