Hire Purchase:
The Seamless Path
To Ownership

Hire purchase is a financing arrangement where you can acquire assets by making regular payments over a set period. Ownership of the asset transfers to you once the final payment is made.

In hire purchase, you work towards owning the asset at the end of the term, whereas leasing typically involves returning the asset to the lessor at the end of the lease period.

Hire purchase can be used for a wide range of assets, including vehicles, machinery, equipment, and technology.

The benefits include spreading the cost of the asset over time, gaining immediate use of the asset, fixed interest rates, and eventual ownership.

The term length can vary, typically ranging from 12 to 60 months, depending on the asset and the agreement.

Yes, most hire purchase agreements require an initial deposit, which is usually a percentage of the asset’s value.

Payments are usually made monthly and include both the principal amount and interest.

Once all payments have been made, including any final balloon payment if applicable, ownership of the asset transfers to you.

Yes, most agreements allow for early repayment, though there may be additional fees or interest adjustments.

If you’re unable to make a payment, contact your finance provider immediately to discuss potential solutions. Missing payments can lead to penalties or repossession of the asset.

Hire purchase is suitable for many businesses, particularly those looking to eventually own their assets, but it’s important to consider your specific financial situation and needs.