What is Personal Hire Purchase (PHP)?

Also called Conditional Sale, Personal Hire Purchase is a simple and familiar solution to finance your new car. Unlike Personal Contract Purchase, where you make lower monthly payments and then have the option of settling the finance at the end of the agreement (by paying off the remaining value), with Personal Hire Purchase agreements you pay off the full value of your car through thecombination of the deposit and monthly repayments. Below we have put a few details of how Personal Hire Purchase works, and a brief summary of its benefits.

How Personal Hire Purchase works:


As with a Personal Contract Purchase agreement, a buyer will put down a deposit on their new car and finance the balance. Your deposit can be cash or your current car as part-exchange (trade-in), or a combination of both.

Term of agreement and repayments

Most Personal Hire Purchase deals are available for anywhere between 18 and 48 months, although the most common is 36 months.  Over this period, monthly repayments are made which work towards paying off the balance of the car in full. As a general rule, longer terms agreements give lower monthly payments, although it’s not always the case.


At the end of a Purchase Hire Purchase agreement, you will own your vehicle outright. You will pay for your car through fixed, equal, regular instalments over a period of time which suits you.

If you are looking to own the car and not looking to change for a fairly long period of time this is an extremely cost effective method of paying for your next car.