How do monthly payments differ from that of traditional Hire Purchase finance?
Your monthly payments are dictated by your deposit (if you choose to pay one), the length of time you decide to spread the cost over, the annual mileage allowance you agree to and the value the finance company predict your vehicle will be worth at the end of the agreement. You’ll pay the outstanding amount off during the agreement, plus interest. So you’re not paying off the full value of the car. This is why the monthly payments are lower.