Comparison of Financial Products

  Hire Purchase Finance Lease Operating Lease
Ownership Ownership transfers at the end of the term once the option to purchase fee is paid. Return at lease-end or act as an agent for sale on behalf of Cat Financial. Customer retains sales proceeds.
Option to return or purchase at lease-end. Purchase only available at market value.
Equity Buildup Dependent on the payment structure Dependent on the payment structure None
Tax Depreciation Customer Customer Cat Financial
Payment Flexible structure available to suit your business requirements Flexible structure available to suit your business requirements Flexible structure available to suit your business requirements
Purchase Option Yes. Option fee payable with final monthly payment. N\A Yes, available at market value.
Contract Flexibility Yes Yes Yes
Early Pay off Restrictions Early settlement may be subject to additional charges Early settlement may be subject to additional charges Early settlement may be subject to additional charges  
Additional Information
  • Immediate equity through down payment or trade-in
  • Quickest equity build up through repayment
  • Customer cannot own asset 
  • Customer may take depreciation
  • Equity build up depends on structure
  • Customer treats unit as rental
  • No equity build up

 

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