Car Lease Of Hire Purchase

[pracha]

Hi Guys,

I need to know some information, as bank loans gets quite a bit of time and so much of documentation to complete, i need to know the difference between Lease, hire purchase and finance.

I want to buy a car (2nd hand) and i cannot go thru the bank loan process since i dont have much free time,

i know you cant lease a used car, so only option is hire purchase of finance, but most probably i might change the car by next april.

if i go for hire purchase of fianance, can i settle the balance amount and change the car or do i have to pay the whole interest to sell the car.

Appreciate your help.

Thanks

Prasa

[Reckless]

Im prety sure this has been discussed before, do a search.

AFAIK when you are getting a loan they do not keep the book of the car and you can sell it off and get a new one any time you want. But in hire purchase the cars absoulute owner will be the bank and they will keep the book, and of course you will have to pay the installments on time other wise they might seize the car. I dont think that you can sell off the car and get a new one as you wish, you will have to pay the whole intrest and they will probably give you a rebate. You will have to give the documents from the bank to the new owner saying that the hire purchase has been settled and the bank has no further interset of the car. Experts correct me if Im wrong.

[sbr]

Once the hire purchase is settled, Hire purchase bank will give a letter stating that the bank has no further interest of the car. Owner should take this letter+vehicle book to the RMV and get the vehicle transferred under your name. After that you do not need to carry a letter from the hire purchase bank since the vehicle is already transferred to your name.

A person working in the hire purchase industry once told me that, once a vehicle owner pays 50% of the total hire-purchase amount,he gets more legal ownership to the vehicle than the bank. Not sure how far this is practical. But according to my experience hire purchase cost me much more than going for a lease(about 5 years back).