Most people use hire purchase financing as a private motor vehicle loan or to purchase private vehicles. For hire purchase financing, you will be considered ‘the hirer’ whereas the financier that finances the vehicle is considered ‘the owner’. The financier in this context would be the financial institutions.
Becoming a hirer means you have to come to a consensus on a tenure in which you have to pay the instalments to the financier upon possessing the vehicle. Once you’ve settled all the instalments, you will have total ownership over the vehicle.
If you are interested in taking on hire purchase financing to purchase your vehicle, it can be applied from any local banking institution. You may also get this financing through the dealer of the vehicle that you want to purchase.
Among the information that is vital in a hire purchase agreement are:
a) Description of motor vehicle
b) Calculation of total sum payable
c) Minimum deposit
d) Term charges and annual percentage rate
e) Late payment charges
f) Date on which hiring commences
g) Number of instalment repayments
h) Amount of each instalment repayment
i) Person to whom repayments are to be made, time and place of
repayments
j) Address where the motor vehicle is to be kept
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