What does option fee mean?
A small fee sometimes payable at the end of a hire purchase agreement before title passes to the customer.
The exact meaning can vary depending on the asset, lender criteria, agreement wording and business circumstances.
Related finance product
Hire Purchase
A straightforward route to eventual ownership with fixed monthly payments and clear budgeting.
Written by: Hart Asset Finance
Reviewed by: T & L Leasing Limited trading as Hart Asset Finance
Last reviewed: