Otherwise a court order is required although the company still retains ownership of the goods. It is illegal to resell the goods before all the hire purchase instalments have been paid. Leasing Leasing is popular for purchasing cars, office equipment and farm machinery. The leasing company retains ownership, and the goods funded can be repossessed at any time during the lease period without obtaining a court order. Customers should check contract terms carefully.
Some agreements require a deposit, while others require a lump sum to be paid at the end.
Normally the leasing company will require proof that the asset is insured. For cars, insurance is mandatory under law. This is a popular option for buying cars. In effect it is like renting a car with much lower repayments than traditional leasing. At the end of the rental agreement options include purchasing the car at a price below the current market value, or entering into an agreement for a new car.