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Whats the difference between hire purchase and personal lease hire deals?

If you are in the market for a new car, and are not sure whether to look for hire purchase or personal lease hire deals then reading this article will help. Many people make the mistake of think that they are very similar, but actually they differ in many ways – including payment duration, maintenance and repair of the car, and the extent of the finance.

So, let’s take a closer look at the differences between hire purchase and lease hire:

Lease Hire

In simple terms, personal lease hire cars are cars that are bought through a financial contract between the customer (you) and the car supplier (us). This contract usually entails the customer paying the supplier a fixed amount of money per month for a specified period of time.

Hire Purchase

Hire purchase, on the other hand, is where the customer agrees to pay the total cost of the car in instalments over a period of time. These instalment's not only cover the principal cost but also the interest as well. The customer receives the car as soon as the hire purchase is signed, but doesn’t officially become the owner until after the last payment is made. The hirer can also terminate the agreement at any time, by taking ownership of the asset.

The main differences between lease hire and hire purchase

  • Ownership. When you lease a car, the car is still owned by the leaser, and you the customer will not usually have the option to purchase the car at the end of the lease. With hire purchase, however, the customer has the option to purchase the car and so will become the owner of the car after the last payment has been made.
  • Duration. Hire purchase payments tend to be larger than lease payments as they are spread over a shorter period of time
  • Maintenance and Repair. With both lease hire and hire purchase repair and maintenance is the responsibility of the customer

Hopefully, this has cleared up the differences between hire purchase and lease hire when it comes to cars.

If you are looking for the best personal lease hire car deals in the UK, then look no further than Amber Vehicle Solutions.

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5th of March 2020

Contact us

Email : sales@ambercarleasing.co.uk

Telephone : 01625 704396

Company Address :
Amber Car Leasing
9A London Road
Alderley Edge
Cheshire

SK97JT

Amber Car Leasing are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 660869

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Registered Office : Sterling House, 501 Middleton Road, Chadderton, Oldham, OL9 9LY

Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.

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