Should you lease or hire purchase?

To understand the best path for your situation it is crucially important to understand the differences between leasing and hire purchasing. They are subtly different in crucial points that can make more difference than you realize. Cashdoctors.com.au wants you to understand fully about anything touching on your finances, so you can make the best decisions.

Let's begin with the blatantly obvious.

In hire purchasing, you are in fact purchasing what you are paying on. To be more accurate, buying an option on purchasing at some future date.

With leasing, ownership is never really in question and your money only goes to the use of the item in question. This is really the main difference, and can seem tiresomely obvious, but it is a crucial difference. This importance comes at the end of the contract. With leasing, you have no claim on the item or property, your money has only gone to cover the time you are using the item.

With hire purchase, at the front end of the contract you have agreed that when you are done with the specified time in the contract, you can purchase the item for an agreed upon sum. This is considered by many to be the main drawback of the situation. As the money you've already spent doesn't necessarily enter into it, so you can end up paying twice for the same item.

This could be a good place to take out a loan instead and purchase upfront.

Cashdoctors.com.au makes this process easier so that you can move ahead with the situation that is best for you. Get ready by logging on to cashdoctors.com.au and setting up your Cash Doctors card. This card entitles you to a hassle-free payday loan, and can even make cashing cheques quicker and easier. Your money can even then go onto the card, giving you cash with credit card convenience.

Leasing can have its drawbacks as well, as you will never own what you're paying on. This can mean you pay for the item even more than twice and never have any claim to it. Yet, it can be just the way to go if you really don't need something for that long, or want to eventually own it. Take the example of a flat. You may only be in town for a temporary assignment. It will be longer than you would like to stay in a hotel, but definitely not permanent. In this case the lack of claim and ties is ideal. Once you finish the assignment; you can go to your real home, no strings attached.

Each of these payment methods has their purposes; it is up to you to have all the facts and make the right choice for the situation.

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