Outright purchase: The purchaser becomes the rightful owner of the equipment or asset.
Hire purchase: This gives the customer the right to purchase an asset according to a pre-agreed payment method. With this option, the user may be the owner for tax purposes.
Operating lease: This is a fixedterm lease, with the contract period shorter than the life of the equipment.
The lessee remains responsible for all maintenance and servicing costs, although these are often incorporated into the overall lease rental.
Finance lease: A deal whereby the lessee does not become the rightful owner but can share in some of the benefits of ownership at the end of the lease. VAT is paid by the user on a monthly basis and the user is responsible for maintenance and insurance.