Hire purchase

Hire purchase – in many jurisdictions this term refers to the leasing contract, very popular for purchasing vehicles, where the ownership of the goods and items remains to the leasing company (which has initially paid the total purchase price to the seller) and the buyer can use the good and pay the price plus interests and costs on monthly installments. Once the last installment has been paid by the buyer towards the leasing company, then the ownership of the good is transferred to the buyer.

Posted in: H