This is a method for acquiring ownership of a vehicle, it can be referred to as lease purchase (LP) or hire purchase (HP).

With these agreements, the purchaser hires the vehicle from a finance company with an option to purchase it at the end of the hire term. The agreement generally requires a deposit anywhere from three month's rentals up to 20% of the capital cost of the vehicle and will usually terminate with a balloon payment – normally equivalent to the forecasted residual …