A contract (more fully called contract of hire with an option of purchase) in which a person hires goods for a specified period and at a fixed rent, with the added condition that if he shall retain the goods for the full period and pay all the installments of rent as they become due the contract shall determine and the title vest absolutely in him, and that if he chooses he may at any time during the term surrender the goods and be quit of any liability for future installments upon the contract. In the United States such a contract is generally treated as a conditional sale, and the term hire purchase is also sometimes applied to a contract in which the hirer is not free to avoid future liability by surrender of the goods. In England, however, if the hirer does not have this right the contract is a sale.
An agreement to buy goods where a person gets possession of the goods without paying for them in full, however ownership of the goods does not pass to them until after the goods have been paid for• Consumer Credit• Used Cars
The buyer pays an initial deposit and takes possession of the goods. After all the instalments are paid over a specified period the ownership passes to the purchaser.
Term originating in the UK for a lease with a nominal purchase option at the end
Arrangement for purchasing an item with periodic payments.
This is a form of credit which allows the purchaser to have possession of the goods shown in the hire purchase agreement. Ownership passes to the purchaser when they have paid all the instalments and any fee.
Term describing purchases brought using credit.
or installment credit - loans to consumers that are repaid over 2 or 3 years.
This is a finance contract and includes conditional sale. The vehicle is hired by equal monthly payments and the customer ownership of the vehicle is at the end of the agreement.
An agreement where goods are hired for an agreed period, at the end of which the hirer has the option to purchase.
Hire purchase is a method of buying a product where you pay for the goods in small amounts over a period of time. While you are paying for it you can take the goods home and use them. Usually you pay interest and other charges as well as the price of the goods. Some shops donâ€(tm)t charge interest for the first few months. Always ask about ‘interest-freeâ€(tm) terms. This term no longer applies to any contract entered into on or after 1 April 2005. Credit sales is the new term for hire purchase contracts under the Credit Contracts and Consumer Finance Act
The pre-agreed purchase of an asset where the asset e.g. computer is in your possession as long as repayments are kept to. Once enough payments are made, the asset becomes your property.
A system of purchase by paying in instalments. The item only becomes yours after the final payment.
A form of credit involving a down payment followed by regular monthly payments. During the credit period, the goods involved are the property of the credit company, and the user is hiring them from that company.
A type of finance agreement which includes an option for you to buy the goods at the end of the hire period. It is also known as Lease Purchase.
A transaction in which the purchaser of goods pays an initial deposit and takes possession. Subsequent instalments are made over a specified time after which ownership passes to the purchaser. Cars or other auto loans are often on HP.
The pre-agreed purchase of an asset where the asset is in your possession as long as repayments are kept to. Once full payment is made the asset becomes the property of the consumer.
An agreement to purchase an item over time subject to specified payment terms. Ownership of the item is transferred to you when you make the final payment.
You take away the goods and can use them. You have to make regular payments and after a set length of time, when the goods have been paid for, the goods will become yours. Cars are often bought this way. You would not own the car until you have completed the hire purchase agreement - so you would not be able to sell the car until you had paid for it.
A method of buying goods by paying regular sums over an agreed period. The sums involved will usually cover the cost of the item and an element of interest. At the end of the hire period, the asset will legally pass to the hirer on payment of a nominal sum.
Hire purchase (HP) is an idiom and legal term for a form of purchase in which payment for goods is made in instalments over a period of time and in which title to the goods supplied - in other words, ownership - does not pass to the purchaser until all such payments have been made. Retention of title to goods differentiates HP from other common consumer credit systems. The consumer hires the goods, pays regular periodic rent payments, and - depending upon the nature of the agreement - must or may purchase title to the goods with a final payment (or may elect at the end of the hire period to return the goods to the vendor without seeking a transfer of title).
The consumer pays a deposit and makes regular payments to the finance company. The consumer does not own the goods until all the payments have been made. If the payments are not fulfilled, the finance company may repossess the item.
An agreement, under which i) goods are hired in return for periodical payments by the person to whom they are hired, and ii) the property in the goods will pass to that person if the terms of their agreement are complied with and if the option to purchase is exercised by that person.
payment according to an installment plan
This is a form of installment payment where the customer takes ownership of the equipment on their final payment. The lessor does not currently have a Hire Purchase Agreement for customers regulated by the Consumer Credit Act.
Hire purchase (frequently abbreviated to HP) is the legal term for a conditional sale contract developed in the United Kingdom, and now found in India, Australia, New Zealand, and other states which have adopted the English law concept. (In North America, where the word hire most commonly refers to employment, the comparable system is called closed-end leasing.) In cases where a buyer cannot afford to pay the asked price for an item of property as a lump sum but can afford to pay a percentage as a deposit, a hire-purchase contract allows the buyer to hire the goods for a monthly rent.
