Drivelease Hire Purchase combines elements of both a loan and a lease. You reach an agreement to pay an initial deposit, typically anything between 10% and 50%, and then pay off the balance in monthly instalments over an agreed period of time. At the end of this period, the car is yours.
Unlike a lease or a personal contract purchase agreement, the residual value of the vehicle is not taken into account. Instead your monthly payments on a hire purchase agreement are determined by the retail price of the vehicle, the size of the deposit and the length of the contract.
In effect, the contract is between you and the lender but is arranged by us as your broker. The lender effectively buys the vehicle and allows you to use it while you make payments. Only when all payments are complete is the car officially yours.