What is Hire Purchase?	Features of Hire Purchase:
Hire Purchase is the traditional method of financing a vehicle with the vehicle becoming the property of the lessee at the end of the financed period. The amount of initial payment paid, the duration of the contract, the interest rate on the outstanding amount and the sale price of the vehicle can vary the monthly payment. This method of funding is available to both companies and private individuals.	Accurate budgeting with fixed interest payments. However, unlike Contract Hire, there is no maintenance element to this form of contract. This therefore makes your maintenance a variable charge which is more difficult to budget A separate maintenance contract is a useful addition with this product Negotiable initial payment and, depending on contract, payment frequency You are able to recognise the vehicle as an asset immediately and claim capital allowances, as well as recognising the liability for the amount financed No VAT charged on interest only rentals. Which would suit an unregistered company or an individual Interest charge can be fixed or variable Title to the vehicle will pass on the payment of the purchase fee payable at the end of the contract There is an option for a larger final instalment on this agreement, called a balloon payment, to reflect the value of the vehicle at the end of the contract term.