What Is The Differences Between Hire Purchase And Lease Agreement?


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Anonymous answered
In hire purchase ,Financer is the owner, and owner ship is transferred after payment of last installment.
In lease agreement, Financer is the owner,but ownership is never transferred.
In hire purchase , Hirer is entitled to claim depreciation benefit.
In lease agreement,The lessor is entitled to claim depreciation benefit.
3. Magnitude:
In hire purchase ,Low
in lease agreement,High
4. Extent:
In hire purchase ,Less than 100% (50-75%)
in lease agreement,Up to 100%
5.Maintenance :
In hire purchase ,Hirer’s responsibility
in lease agreement,Lessor’s responsibility
6. Tax benefits
In hire purchase, Hirer
in lease agreement, Lessor
Anonymous Profile
Anonymous answered

I listened this term many time and seems to ask my teacher but glad to here the perfect details over here. Hire and purchase agreement sounds necessary when we enter in some deals. I often reach online writing services when I am directed to prepare papers on such typical topics.

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