What Is The Differences Between Hire Purchase And Lease Agreement?

1.Ownership:
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.
2.Depreciation:
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