Hire Purchase (HP) or Conditional Sale finance reports

By the end of this section, you'll be able to:

• Open a vehicle record and start an HP or Conditional sale finance report
• Enter the agreement details correctly so the figures reflect reality
• Review the finance tracker, equity, and settlement breakdown
• Apply the right interest period when validating settlement estimates
• Record actual settlement figures and build up a settlement history
• Use the financial projection to plan against liability and market value
  
  

Step 1: Open the vehicle record and find the finance section

1. Select the relevant vehicle record on the Vehicles page.
2. Go to the Vehicle Data page by clicking on the relevant registration number.
3. Scroll down to the Financial Overview section.
4. Confirm you're working on the correct vehicle before generating the report.

Step 2: Start the report and enter the initial finance details

1. Click Generate Report.
2. In the pop-up, confirm Yes if the vehicle is financed.
3. Enter the vehicle's monthly payment.
4. Enter the vehicle's current cumulative mileage.
5. Enter the estimated annual mileage for this vehicle.
6. Click Continue to let the platform identify the agreement type.

Step 3: Complete the HP or Conditional sale agreement questions

1. Once the borrowing and deposit details are input correctly, click Continue.
2. The platform will display the agreement summary.
3. Review the valuations shown — the platform will generate an estimated settlement figure based on the information you've entered.

Step 4: Review the report summary and valuation outputs

1. 1. Review the report once it loads.
   2. Check the valuation sections:
      • Trade valuation
      • Private sale valuation
      • Management valuation
   3. Locate the estimated settlement figure.
   4. Review the estimated car equity shown against the settlement figure.

Step 5: Inspect the Finance Tracker for agreement details

1. Scroll to the Finance Tracker section.
2. Confirm the vehicle is listed under an HP or Conditional sale agreement.
3. Verify the provider name and agreement number.
4. Read the agreement description to understand the HP or Conditional sale structure.
5. Review the agreement details populated from your inputs, including:
   • Monthly vehicle repayment
   • Total amount borrowed
   • Monthly interest
   • Daily interest

Step 6: Check repayment progress and remaining liability

1. Review how far through the agreement the vehicle is.
2. Check how much has already been paid based on the monthly payment you entered.
3. Review the remaining figures shown:
   • Remaining monthly payment liability
   • Total interest remaining
   • Number of months left

Step 7: Review the settlement figure and early settlement saving

1. Locate the Settlement Figure section.
2. Review how the estimated settlement figure was calculated.
3. 58-day interest charge is automatically applied if your agreement length is longer than 12 months.  If the agreement length is 12 months or shorter a 28-day interest charge will be automatically applied.
4. Check the early settlement saving displayed alongside the settlement figure.

Step 8: Enter an actual settlement figure when you have one

1. If you have the actual settlement figure from your agreement documentation, click Enter Actual Settlement Figure.
2. Enter the value in the pop-up.
3. Click Calculate.
4. Confirm the estimated settlement figure greys out and the actual settlement figure becomes the active value.

Step 9: Recalculate equity and review settlement history

1. Review Step 10: Review voluntary termination and acquisition calculations section.
2. Use this section to determine whether voluntary termination is possible.
3. Assess whether the outcome would result in a shortfall or surplus based on the agreement.

Step 10: Review voluntary termination and acquisition calculations

1. Scroll down to the Cost of Acquisition and Voluntary Termination section.
2. Review the figures shown against the VT threshold.
3. Identify any shortfall or surplus based on the calculation.
4. Use this section to assess whether the agreement is approaching voluntary termination limits.

Tips for keeping finance reports accurate

• Have the original agreement documents to hand before starting so you can quickly enter the borrowed amount, deposit, and agreement number.
• Use the estimated settlement figure first if the actual figure isn't immediately available, then refresh it once you have the real number.
• Re-run the report monthly to keep settlement and equity information current.
• Use the six-month projection to support timing decisions without needing separate manual calculations.
  
  

What's next?

• Head to Loan Vehicle Finance Reports or Lease and Contract Hire Finance Reports or PCP finance reports if you also manage vehicles on those agreements.
• Visit the Vehicles Management page to review the wider vehicle record.