Hire purchase vs finance lease - side by side
Run the same asset through both structures. Compare monthly cost, total cost, and what happens at the end. The cheaper option depends on whether you want to own the asset or hand it back.
Asset and term
Hire Purchase
Lower totalYou own the asset at the end of the term.
Monthly payment
£2,117
- Deposit
- £18,000
- 60 monthly payments
- £127,041
- Option-to-purchase
- £150
- Total cost of ownership
- £145,191
Finance Lease
Lender keeps title. You use the asset; buy at residual to own.
Monthly rental
£2,242
- 60 monthly rentals
- £134,514
- Residual to own
- £12,000
- Total rentals only
- £134,514
- Total cost to own at end
- £146,514
Hire purchase comes out £1,323 cheaper over the full term if you end up owning the asset. Lease often wins when you don't want to own at the end - handing the asset back avoids the residual buyout entirely. Tax and accounting treatment differs between the two; speak to the specialist we forward you to before locking in.
Important
This tool produces illustrative figures only. Actual rates, fees, and terms depend on the lender, your business profile, the security, and the structure agreed at underwriting. Tenttfinance does not present offers or run credit checks - we forward your details to a private lender or broker matched to your situation. Always verify final figures with the specialist you're introduced to.
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