Hire Purchase

[squance]

I have this finance assignment I have to do where I the situation is that I'm buying a new car....

I have to find 3 alternative sources of financing.

I was talking with someone and they suggested "Hire Purchase"....

Isn't hire purchase for businesses only, not individuals???

[Odette]

Nah hire purchase is for individuals as well (i think)

[squance]

Nah hire purchase is for individuals as well (i think)

Ok..and im confused...is hire purchase the same thing as a financial lease..(in relation to cars) or is it different. Because in hire purchase, your not the owner of the car until you pay the final repayment while in the lease thing, your never the owner of the car, right?

Sooo confused....

[Odette]

Ok here's what i found out lol.. Hire Purchase is: The pre-agreed purchase of an asset where the asset eg car is in your possession as long as repayments are kept to. Once enough payments are made, the asset becomes your property. (hope that helps)

[AppleXY]

I have this finance assignment I have to do where I the situation is that I'm buying a new car....

I have to find 3 alternative sources of financing.

I was talking with someone and they suggested "Hire Purchase"....

Isn't hire purchase for businesses only, not individuals???

Credit (with a security), Cash and Lease.

Hire purchase is similar to Flexi-rent

[squance]

I have this finance assignment I have to do where I the situation is that I'm buying a new car....

I have to find 3 alternative sources of financing.

I was talking with someone and they suggested "Hire Purchase"....

Isn't hire purchase for businesses only, not individuals???

Credit (with a security), Cash and Lease.

Hire purchase is similar to Flexi-rent

'Lease' is not buying a car...its borrowing... right?

[tuvubro]

Your rights to the car as if you pretty mcuh own it, not like say renting a house

[teach1]

"Squance", I hope you understood my explanation of the difference between hire purchase and leasing - if not, contact me and I'll go through it again. You can email me if you want to instead!

[squance]

"Squance", I hope you understood my explanation of the difference between hire purchase and leasing - if not, contact me and I'll go through it again. You can email me if you want to instead!

Wat da?? Are you my old maths teacher??? How in the world did you know I was squance??? OMG!!!!!!!!!!!!!!!!!!!!
AHHHHHHHHHHHHH!!!!!!!!!

[AppleXY]

Oh yeah, Squance, with leases it's virtually full ownership of the car. But Hire Purchase is a much better one. Hire Purchase is where you have an explicit agreement to rent  an asset which you can then full own once you pay the stipulated amount. Examples are Rent Smart and Flexi Rent.

[squance]

Oh yeah, Squance, with leases it's virtually full ownership of the car. But Hire Purchase is a much better one. Hire Purchase is where you have an explicit agreement to rent  an asset which you can then full own once you pay the stipulated amount. Examples are Rent Smart and Flexi Rent.

Thanks AppleXY!

[squance]

Oh by the way...
can someone give me a site where I can find the interest rates for hire purchase (I don't care what company...) because I have to do calculations in the 2nd part of my assignment...
Pretty please???

[teach1]

Squeaking and your name goes together!! Leasing works well for business, in that you can write off your lease payments as a tax deduction if the vehicle is used for the business. At the end of the lease you have the option of buying out the vehicle with a set amount agreed to in the original lease contract, or you simply give the vehicle back and lease a new vehicle on a new contract. Hire purchase is the use of finance, quite often at a higher rate of interest than a personal loan from a bank, where you simply pay off the vehicle over an agreed period of time, usually at set monthly payments. When you have paid off the finance company over time, the vehicle is yours. Pretty much the same as a personal loan type arrangement - different source of finance, that's all.
Hope that helps a little. You guessed right!!

[teach1]

Google "hire purchase companies" (Australia) for a number of sites of companies. Also look up this site for advantages/disadvantages of hire purchase plus what it basically is  - it's only one page - an easy read.
www.investorbuddy.com.au/financial-planning-and-tax/is-hire-purchase-a-better-way-to-buy

[Collin Li]

Why do you know so much about finance? Why did you become a maths teacher?