Hire purchase (HP) is the simplest way to finance a pickup you want to keep. You pay a deposit and fixed monthly payments, and the pickup is yours once the last payment is made. It’s available whether you’re buying for work or personally.
In short
With pickup hire purchase, you pay a deposit, then fixed monthly payments covering the full price plus interest, and you own the pickup at the end. There’s no mileage limit and no large final payment. Businesses should check the tax position on double cabs before buying.
What is pickup hire purchase?
HP works the same way for pickups as for cars and vans. The lender owns the pickup until your final payment, then ownership passes to you. Because you’re paying off the full price, monthly payments are higher than with lease purchase or PCP.
How pickup HP works step by step
- Agree the price of the pickup.
- Pay a deposit, in cash or with a part-exchange. For a VAT-registered business, the VAT is usually paid upfront.
- Choose a term, usually two to five years.
- Make fixed monthly payments.
- Own the pickup after the final payment and any small option to purchase fee.
- Deposit£3,200 upfront
- Monthly payments48 × £735.86
- Own the pickupAfter the final payment
- £3,200Deposit8% of total
- £35,321Monthly payments92% of total
- NoneFinal paymentPickup is yours
Total you pay: £38,521, including £6,521 interest.
Worked example
A pickup costs £32,000 (excluding VAT). You pay a £3,200 deposit and borrow £28,800 over 48 months at an illustrative APR of 10.9%. Your monthly payment would be about £735.86, and the total you’d pay, including the deposit, would be about £38,521. These figures ignore VAT and fees and are not a quote.
Pros and cons of pickup HP
Pros
- You own the pickup at the end, with no large final payment
- No mileage limit, which suits towing and long-distance work
- Less interest overall than lease purchase or PCP
- Fixed payments for predictable budgeting
Cons
- Higher monthly payments, especially on expensive models
- VAT is usually due upfront on a business agreement
- You carry the risk of the pickup’s value falling
- Double cab tax changes may make business ownership costlier
Tax and VAT on pickup HP
A VAT-registered business can usually reclaim the VAT on a double cab with a payload of one tonne or more, as it would on a van. But since April 2025, most double cabs are treated as cars for company car tax and capital allowances. If you’ll use the pickup through a business, read tax changes for double cab pickups and speak to your accountant before you choose.
Your rights on a pickup HP agreement
Personal and sole trader HP agreements are usually regulated by the Consumer Credit Act, giving you rights such as early settlement and voluntary termination. Agreements with limited companies usually aren’t, so those rights depend on the contract.
Pickup HP FAQs
Can I finance a used pickup on HP?
Yes. HP is widely available on used pickups, though lenders may set limits on the age and mileage at the end of the agreement.
Can I fit accessories to a pickup on HP?
Usually, but the lender owns the pickup until the final payment, so check your agreement before making major modifications. Tell your insurer about any changes.
Is HP or lease purchase better for a pickup?
HP costs less overall and has no final payment. Lease purchase lowers the monthly payment but adds a large final payment and more interest. Compare the total amount payable on both.