Hire Purchase Interest

a company wants to buy equipment for 800,000 pounds and Im trying to find the best way to pay by weighing the options, I've reduced the lease and a bank loan can you please " , who obtained the greatest interest lease purchase or a bank loan "and that u recommend that you use for this purpose

This sounds like a homework question, but the answer would be lease-purchase "would wind up costing more. But you need to look at the details.

What are the payment terms of leasing? Calculate total payments and see how much more than the cost of buying it will cost. Usually, the rate (in the U.S. anyway) is between 18% and 25% for this mode of payment.

Make sure there is no balloon payment at the rear end, too.

A bank loan is to get a better rate and you own the equipment outright at the end of the payment schedule.

Clearly, with these assumptions, if you can make the bank loan, go ahead. Your goal is to keep your interest costs as low as possible.

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