Hire & Lease Purchase

Another form of debt agreement that you can enter into to acquire, usually larger items (cars, household appliances, motor homes, boats etc), paying over a deferred period of time. 

These types of agreements do vary, some where you pay low rates of interest to some with very high rates of interest, sometimes dictated by the incentives given to the seller by the car manufacturer’s for instance, or by finance companies by way of kick back.

Many of these types of agreement mean that you don’t own the asset until its fully paid for, with the suppliers/finance companies interest being registered against you and the asset on the Personal Property Security register (PPSR).

Subject to procedural steps being taken by the lender or secured party, if you default, they are able to repossess the goods supplied under the finance agreement, but they can still then pursue you for any shortfall under the agreement, as well as pursue any guarantor that might have put themselves up as surety under the agreement.