Quick Car Hire Purchase Question

babelfish

When buying a car with HP finance, do you put yourself as owner of the car when applying for car insurance? Do you own it or do the HP company?

purdyoaten

Your name - the HP company won't be driving it!

Technically you own it - unless you force the HP company to take possession!

iolanthe07

purdyoaten wrote: »

Your name - the HP company won't be driving it!

You own it - unless you force the HP company to take possession!

Actually, you don't own it until you've made the final payment. Hire Purchase means you hire it during the years of your purchase, which is only complete at the end. The insurance company may ask you whether the car is being purchased on hire purchase may ask for the name of the lender. If they don't, put yourself down as the owner, even though technically that isn't quite correct.

poppasmurf_bewdley

The car is not yours until you make the final payment AND pay the option to purchase fee. It's hired to you for the duration of the rental agreement. That's why it's called Hire Purchase.

If you have a total loss claim, the insurance will pay out to the finance company, not you.

iolanthe07

poppasmurf_bewdley wrote: »

The car is not yours until you make the final payment AND pay the option to purchase fee. It's hired to you for the duration of the rental agreement. That's why it's called Hire Purchase.

If you have a total loss claim, the insurance will pay out to the finance company, not you.

True hire purchase technically does not have an option to purchase fee (though some companies ask for one). An option to purchase fee is a feature of some lease deals.