Hire purchase finance (HP) is an excellent way of buying a car when you don’t have the money to pay for it upfront. Not only is the vehicle yours once the final payment has been made, unlike PCP, but you’re more likely to get car finance with a poor credit rating using HP.

But once you’ve got the car, what can you do with it? In this post, we’ll discuss whether you can modify a car on HP finance.

What is HP finance?

HP finance is essentially a deal where you borrow the money to pay for your car. As a result, you aren’t the owner until the deal is completed. Instead, it is the finance company who owns the car, which means they have a considerable say on whether you modify the vehicle.

Once the last payment is processed and your name is on the V5, you can do whatever you want (as long as the alteration is road legal).

Is there any way to modify a car on HP finance?

Yes – but you need to ask for permission first. If you don’t, you may void the terms of your agreement, and the finance company is entitled to ask you to pay the remaining balance in full. Alternatively, they may take the car back and sell it at auction. Should the car make less at auction that you owe to the finance company, you could then be liable for the balance.

By contacting the lender, either via telephone, email, or letter, you will eliminate any nasty surprises down the line. Make sure you get confirmation in writing. That way, you can prove you didn’t nullify the terms and conditions of the deal.

What are considered modifications?

Considered modifications on a HP finance deal can be anything that impacts the value of the car, whether positively or negatively.

Even the smallest modifications can have an impact on your finance agreement, so be careful not to make changes that haven’t been agreed with the lender.

Modifications could include, but are not limited to:

  • Cosmetic changes to appearance, e.g., body kits, spoilers, paint, wraps, window tints, lights, wheels, etc.
  • Upgrades in performance, e.g., suspension, exhaust, engine, brakes, gearbox, etc.
  • Addition of towing equipment, e.g., towbar
  • Infotainment systems, e.g., software, screens, speakers, stereos, etc.

So, don’t take the risk – speak to the lender. And of course, if it’s simply the case that you’re ready for a car with even more specifications, My Car Credit can help you with calculating and arranging car finance on your next wheels.

Rates from 6.9% APR. Representative APR 14.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 14.9%, annual interest rate (fixed) 14.85%, 47 monthly payments of £204.69 followed by 1 payment of £214.69 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,335.12, total amount payable is £9,835.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!