Hire Purchase (HP) is a hiring agreement between you and the finance company.
The loan is secured against the vehicle over a set period between 1 and 5 years, with fixed monthly repayments including interest.
During or at the end of agreement (if the balance has been paid in full), you have the option to own the vehicle by paying an additional sum called the Option to Purchase Fee, you will then own the title to the car and become the legal owner.
You are the registered keeper of the car and responsible for insuring and maintaining it, but the finance company remains the legal owner until the amount you borrowed has been fully repaid.