Mercedes-Benz Hire Purchase
Hire Purchase is perhaps the most traditional of funding methods. The monthly payments are determined by the amount of deposit initially paid, the period of the contract and the overall price of the vehicle. Once all of the scheduled payments have been paid, a final option to purchase fee is due upon which title and ownership of the vehicle is transferred to the customer......
A typical hire purchase option will consist of paying a low deposit amount (maybe 10% of the vehicle price), have no mileage restrictions and entitle the customer to eventual ownership of the vehicle.
Simply put, the Hire Purchase funding option is best suited to those customers who want simplicity. It is a popular choice among car buyers as it is easy to arrange. With the funding effectively secured against the vehicle it may be said that finance acceptance is also easier to obtain than an equivalent unsecured personal loan and as such can help in protecting the customers first line of credit, the amount of money that the customers bank will lend without asking for further security.