Hire purchase

Hire purchase is a method of buying goods in which the purchaser takes possession of the goods as soon as an initial instalment of the price (a deposit) has been paid. The purchaser only obtains ownership of the goods when all the agreed number of subsequent instalments are paid.

 

reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u

Tags: