This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Hire purchase" – news · newspapers · books · scholar · JSTOR(January 2009) (Learn how and when to remove this message)
A hire purchase (HP),[1] also known as an installment plan, is an arrangement whereby a customer agrees to a contract to acquire an asset by paying an initial installment (e.g., 40% of the total) and repaying the balance of the price of the asset plus interest over a period of time. Other analogous practices are described as closed-end leasing or rent to own.
The hire purchase agreement was developed in the United Kingdom in the 19th century to allow customers with a cash shortage to make an expensive purchase they otherwise would have to delay or forgo. For example, 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. When a sum equal to the original full price plus interest has been paid in equal installments, the buyer may then exercise an option to buy the goods at a predetermined price (usually a nominal sum) or return the goods to the owner.
If the buyer defaults in paying the installments, the owner may repossess the goods, a vendor protection not available with unsecured-consumer-credit systems. HP is frequently advantageous to consumers because it spreads the cost of expensive items over an extended time period. Business consumers may find the different balance sheet and taxation treatment of hire-purchased goods beneficial to their taxable income. The need for HP is reduced when consumers have collateral or other forms of credit readily available, such as credit cards.
These contracts are most commonly used for items such as automobiles and high-value electrical goods where the purchasers are unable to pay for the goods directly.
A hirepurchase (HP), also known as an installment plan, is an arrangement whereby a customer agrees to a contract to acquire an asset by paying an initial...
the Hire-Purchase Act 1938, later amended by the Hire-Purchase Act 1954 and the Hire-Purchase Act 1964. The 1965 Act applied to all hire-purchase agreements...
Personal contract purchase (PCP), often referred to as a personal contract plan, is a form of hirepurchase vehicle finance for individual purchasers...
HirePurchase under Shirkatul Melk (HPSM) is a type of hirepurchase contract which has been developed through practice and approved in Shariah. The term...
In this transaction (hirepurchase or Lease-Sale or Financial Lease) the customer leases (hires) a good and agrees to purchase it, paying in installments...
last rental, or bargain option purchase price). A finance lease has similar financial characteristics to hirepurchase agreements and closed-end leasing...
lease-option, lease-to-own or lease to purchase option. Hirepurchase, used in the UK and other countries for the purchase of cars, other consumer equipment...
other online retailers in that it incorporates a technique known as hirepurchase, where customers can pay with credit, and make monthly payments until...
tallyman was the hirepurchase collector, who visited each week to collect the payments for goods purchased on the 'never never', or hirepurchase. These people...
Big C launched its first credit card, "Big C Credit Card", and "Big C Hire-Purchase". Big C Foundation (Thai: มูลนิธิบิ๊กซี) was also launched in 2002,...
company was initially engaged in bill discounting, along with lease and hirepurchase activities. In the early 1990s, the company started offering car financing...
both parties. Split payment is not the same as an installment purchase (a.k.a. hirepurchase), where payments are done periodically with the same payment...
outstanding instalments due in terms of the hirepurchase agreement. The seller’s hypothec under a hirepurchase agreement secures the seller’s claim to outstanding...
Aseam Leasing and Credit Bhd are incorporated, offering leasing and hirepurchase activities. Opens representative office in Beijing, People’s Republic...
business of loans and advances, acquisition of shares, stock, bonds, hire-purchase insurance business or chit-fund business, but does not include any institution...
Ford in 1968. He drove a Russell-Alexis Mark 14 car bought through a hire-purchase scheme. In his first race at Snetterton, Hunt had lost 15 hp from an...
facility for products bought on a hirepurchase, weekly payment basis with no deposit or credit checks. Hirepurchase contracts are regulated by the Consumer...
Kingdom similarly include car loans, hirepurchase, personal contract hires (car leasing) and Personal Contract Purchases. In 2016, Toyota was found guilty...
finance market in the form of bank loans and overdrafts; leasing and hire-purchase arrangements; equity/corporate bond issues; venture capital or private...
personnel not on active service Haltepunkt, German for railway halt Hirepurchase, a type of sales installment plan Hit points or health points in video...
hirepurchase agreement. Shogun Finance brought a claim against Mr Hudson for the return of its vehicle. Mr Hudson relied on section 27 of the Hire Purchase...
bankers Seligman Brothers. By 1958, banks began to acquire links with hirepurchase companies, and National Provincial Bank bought out the company. After...
bought a Burns electric guitar for £52 (equivalent to £1,512 in 2023) on hire-purchase, but was not satisfied by his progress. He switched to bass guitar after...
United States. Later he founded Triangel and Quatro, two Slovakia-based hire-purchase companies that give the buyer the possibility to pay for goods in several...
Closed-end leasing Cross-border leasing Hirepurchase and Rent-to-own Installment plan Novated lease Personal contract purchase Remote work Smart mobility: component...
Global Information