Is CHP like hiring a car?
No. When hiring a car, you enter an agreement for the use of a vehicle owned by someone else for a short term period. You use the vehicle, pay the hire fee and return the vehicle at the end of the day/week/month.
Commercial Hire Purchase is a form of loan which works towards the borrower owning the automobile. The borrower enters into a hire agreement with the lender. The borrower makes hire payments in accordance with the loan agreement and when all payments including any balloon are finalised, the borrower assumes ownership of the goods.
CHP is a versatile form of finance which can be used for the purchase of a wide range of business vehicles and equipment.