Hire purchase is a form of buying on credit. You want to buy a commercial vehicle, but you do not have enough money to pay for the vehicle yourself in full. In that case hire purchase is an option. You make a down payment, get the commercial vehicle and then pay back the remaining amount in fixed monthly instalments. We calculate the monthly instalment or rent in such a way that at the end of the period the sale goes through. So, with hire purchase the commercial vehicle is your own paid-up property at the end of the period. This is not the case with leasing!
