Compare the Difference Between Similar Terms

Difference Between

Home / Business / Finance / Investment / Difference Between Hire and Lease

Difference Between Hire and Lease

July 23, 2011 Posted by Olivia

Hire vs Lease

Hiring and leasing are two ways a company can fulfill its requirement of equipment for a short period of time without having to invest a huge amount. In hire purchase, one pays for the price of the equipment plus the interest for the period, and this amount is divided over a period of time, while, in case of lease, one gets to use the equipment by paying regular amounts to the lessor of the equipment. There are differences in hire and lease that will be clear after reading this article.

Hire is a very common word and tells the fact that one can hire the services of another person in lieu of regular payment and retains the right to fire the person if he is not satisfies with the services of the person hired. If you are not a freelancer, you work for someone who has hired your services and you work under him. He has the right to retain you for as long as he wishes and can fire whenever he so desires.

Lease is a legal word that describes a contract between a lessor and a lessee. A lessor is the person who buys a product for the use of lessee and lessee agrees to pay a regular amount to the lessor for a specified period of time. There is no transfer of ownership rights though, at the end of the lease period, the lessee has an option to buy the asset from the lessor at a discounted price. There is both finance as well as operating leases that are commonly employed in corporate sector.

What is the difference between Hire and Lease?

• Both hire purchase and lease are used by people to make use of assets without much botheration

• While in hire purchase the hirer becomes an owner after he has made the payment of the final installment, a lessee never gets ownership rights even after the expiry of the lease term.

• There are some leases where risks and rewards are with lessor, while in case of hire purchase, maintenance of the asset is the sole responsibility of the owner of the product or asset.

Related posts:

Difference Between Finance Lease and Hire Purchase Difference Between Finance Lease and Operating Lease Difference Between Shares and Stocks Difference Between Option and Warrant in Stock Market Difference Between Negative and Positive Gearing

Filed Under: Investment Tagged With: Hire, Hiring, lease, leasing, lessee, lessor, ownership

About the Author: Olivia

Olivia is a Graduate in Electronic Engineering with HR, Training & Development background and has over 15 years of field experience.

Comments

  1. Nwagweti Uzodinma says

    January 8, 2021 at 10:28 am

    It very clear teaching that made me to understand what it means to hire and to lease

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Request Article

Featured Posts

Difference Between Coronavirus and Cold Symptoms

Difference Between Coronavirus and Cold Symptoms

Difference Between Coronavirus and SARS

Difference Between Coronavirus and SARS

Difference Between Coronavirus and Influenza

Difference Between Coronavirus and Influenza

Difference Between Coronavirus and Covid 19

Difference Between Coronavirus and Covid 19

You May Like

Difference Between ATM and Frame Relay

Difference Between Stainless Steel and Galvanized Steel

Difference Between Substantive and Procedural Law

Difference Between Substantive and Procedural Law

What is the Difference Between Undescended Testis and Retractile Testis

What is the Difference Between Undescended Testis and Retractile Testis

Difference Between ACH and EFT

Latest Posts

  • What is the Difference Between Coconut Oil and Virgin Coconut Oil
  • What is the Difference Between Wintrobe and Westergren Tube
  • What is the Difference Between Coarctation and Hypoplastic Aortic Arch
  • What is the Difference Between Acquired Brain Injury and Traumatic Brain Injury
  • What is the Difference Between Sensory and Cerebellar Ataxia
  • What is the Difference Between Corneal Ulcer and Corneal Opacity
  • Home
  • Vacancies
  • About
  • Request Article
  • Contact Us

Copyright © 2010-2018 Difference Between. All rights reserved. Terms of Use and Privacy Policy: Legal.