Hire purchase

Lase Purchase
Lease Purchase is a special form of external financing. The leased asset is reported in the asset section of the lease purchaser's balance sheet and thus written down according to the regulations of depreciation for wear and tear. Right from the start of the contract, the lease purchaser is the beneficial owner of the leased asset. The (legal) ownership remains with the leasing company until the automatic transfer of ownership triggered by the payment of the last instalment at the end of the lease purchase contract.
When stipulating the contractual term, leasing decrees are not applied, i.e. in the case of lease purchase terms up to 100% of the depreciation for wear and tear are possible and where required even longer. According to the applicable sales tax, the calculation basis for the value added tax is the sum of all lease instalments the lease purchaser has to pay  incl. a possibly differing final instalment. The sales tax determined has to be made by the lease purchaser by a single payment upon delivery and start of the contract.