Answer:
1)Disadvantages of Hire Purchase
The loan is secured against the vehicle: The vehicle can be repossessed if payments are not kept up.
Non-payment can negatively affect your credit rating.
The finance company are the legal owners of the vehicle until the agreement is paid in full.
2)Advantages of Hire Purchase
Kind to your cashflow. ...
Access high-spec Assets. ...
Lower interest than other funding options. ...
It is possible to claim capital allowances against tax. ...
Own the asset after the last installment. ...
Committing to ongoing fixed payments. ...
Higher cost overall. ...
Asset depreciation.
