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You should clearly state the following information in a printout that anyone can read effortlessly: If you use an HP contract to buy a car, the car dealership sells the car to the financial company. The finance company then leases the car to you for an agreed period of time, usually for a fixed monthly repayment over several years. However, some HP plans have a lump sum payment at the end of the agreement, which is usually higher than your usual monthly repayments. There is another way. If you want to change your car, you can exchange it for another and upgrade it. Your car will be evaluated and you can use it as a down payment for a new car, which you can also get on a hire purchase agreement. A hire purchase agreement ends in one direction, but gives you more freedom to decide what to do next. However, if the consumer has paid one third or more of the total hire-purchase costs, the owner cannot re-own the goods without taking legal action. Any deposit paid at the beginning of the agreement or the value of a trade-in will be taken into account, for example, in the calculation of one third of the cost. The agreement usually includes the condition that the goods are not yours until you have paid the last instalment and the lender may be able to take back the car if you are in default. The larger the down payment you pay, the lower your monthly payments. .