Car Loans

'Hire Purchase' is a form of secured loan that is most commonly used for buying a car. The invoice from the garage must be forwarded to Metropolitan Finance. When you are approved for a loan, the garage sells the car to the finance company, which in turn rents the car to you for an agreed period of time.

During that time you have the use of the car but it remains the property of the finance company. At the end of the agreement ownership of the car passes from the finance company to you provided you have made all the repayments.

You may purchase the car at any time during the agreement by paying a "settlement figure" calculated as the remaining instalments less a rebate. You receive a rebate because the interest was calculated on the loan lasting a certain period of time. Therefore, if you pay the loan off early, less interest is due.

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