With a hire purchase plan you are required to pay a deposit upfront and commit to a set number of monthly payments.
While this type of loan means you get your car from the start of the agreement, it can be repossessed if you fall behind on your payments. You are essentially hiring the car until all the payments are made, at which point you are given an ‘option to purchase’, which is a final payment to make the car officially yours. Another snag with this option is that you will also be unable to sell the car while you are still making the payments, as technically you don’t fully own it yet.
Personal loans can also be used to help finance a car, and many people find one of these before they secure the finances needed before purchasing the car. Obviously this option means that you will own the car outright and will be able to sell it whenever you please, however you will still be making regular payments on the loan you took out.
Make sure you compare the car loans available to you to make sure you find the option that works well for you.