Lease Purchase is an agreement designed to offer dedicated vehicle funding where the customer wishes to purchase the vehicle. It is purely a finance package, and does not include maintenance or other added-value services.
On a Lease or Hire Purchase agreement, the customer pays an initial deposit and then a series of monthly payments until the end of the contract. At the end of the contract, the customer takes ownership of the vehicle. The customer is liable for the full value of the vehicle and has no option to return it at the end of the agreement. To lower the monthly payment a balloon payment agreement can be arranged. The customer is liable for this value and will take ownership on payment.