Finance Options at Tees Valley Caravans

What is Hire Purchase (HP)?

Watch Our Video What is Hire Purchase (HP)?

Hire Purchase is a way to finance buying a new or used caravan. You will normally pay an initial deposit and will pay off the entire value of the caravan in monthly instalments. When all the payments are made, the Hire Purchase agreement ends, and you own the caravan outright.

What are the advantages of HP?

  • You’ll be able to drive away a caravan that you may not have managed to buy outright.

What should you consider when opting for HP?

  • Monthly payments may be higher than some other finance options, such as PCP, as you're paying off the full value of the caravan.
  • You won’t be able to sell the caravan without settling the finance.
  • You won’t own the caravan until you have made all of your repayments.
  • You’ll need to keep the caravan properly insured, maintained and in your possession until the full value is paid off.

Can I settle my HP agreement early?


The short answer is yes, you can end your finance early. There are different provisions within each finance agreement that allows you to do just that. If you have got through two-thirds of the way through your finance agreement, the options to end the finance agreement early open up.

For a Hire Purchase agreement, there is an option of paying it off early through a settlement fee. A settlement fee covers the cost of any remaining unpaid instalments and interest payments remaining on the agreement. Once the settlement fee is paid, you take full ownership of the caravan early.

Under a Personal Contract Purchase agreement, you can also pay a settlement fee for bringing the agreement to an end early. After that, you can choose to hand the caravan back or you have a second option. Through a PCP agreement, you can take full ownership of the caravan by paying off the remaining Guaranteed Minimum Future Value also known as a balloon payment.

Reasons to Buy Online
Why Buy Online?
The best price: You our customer get the best possible price. You can easily compare prices on all our available vehicles.
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