Lease Hire Purchase Agreements

Posted by Robin Hensley

Leasing can be considered a full financing option that does not require down payments, but in the case of a rental purchase, it is normally necessary to obtain a margin amount that must be paid in advance by the tenant. That`s why we call it partial financing like credit, etc. The rental purchase is an agreement to purchase expensive consumer goods, under which the buyer pays a first acomptery and pays the balance, plus interest, in instalments. The notion of rental purchase is often used in the UK and is more often known in the US as a instalment payment plan. However, there may be a difference between the two: for some payment plans, the buyer obtains the ownership rights as soon as the contract with the seller is signed. In the case of lease purchase agreements, ownership of the goods is officially transferred to the buyer only after payment. Acomphement is mandatory in case of purchase of rental. . . .