hire purchase

hire purchase
system for financing the purchase of plant and equipment, where the ownership is vested with the lender until the final payment is made. The borrower is required to place a deposit and make periodic (usually monthly) repayments at a flat rate of interest. Glossary of Business Terms
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The right to purchase an asset by the user of the asset according to a pre-agreed method. The user may be the owner for tax purposes. Bloomberg Financial Dictionary
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An agreement for the hire of goods for periodic payments, where the hirer has the option to purchase. HM Customs & Revenue Glossary

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hire purchase ˌhire ˈpurchase noun [uncountable]
FINANCE COMMERCE a way of buying expensive goods by making regular payments over a period of time. Under hire purchase, the person buying the goods has a right to use the goods during the time they are paying for them, but does not become the legal owner until the final payment has been made; = installment plan AmE:

• A lot of new cars are bought on hire purchase.

• a hire purchase agreement

• The hire purchase price is always higher than the cash price.

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   The purchase of a good by instalments, with ownership not conferred until the final payment is made.

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hire purchase UK US noun [U] UK (US installment plan)
► a method of paying for something in which the buyer pays part of the cost immediately and then makes small regular payments until the debt is completely paid. The buyer can use the product, but does not legally own it until all payments are made: »

They bought the car on hire purchase.

 »

a hire purchase agreement/contract/deal


Financial and business terms. 2012.

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Look at other dictionaries:

  • Hire purchase — (abbreviated HP) is the legal term for a contract, in this persons usually agree to pay for goods in parts or a percentage at a time. It was developed in the United Kingdom and can now be found in China, Japan, Malaysia, India, South Africa,… …   Wikipedia

  • Hire purchase — Hire purchase, or, more fully, Hire purchase agreement Hire purchase agreement, or Hire and purchase agreement Hire and purchase agreement (Law) A contract (more fully called contract of hire with an option of purchase) in which a person hires… …   The Collaborative International Dictionary of English

  • hire-purchase — a form of purchase under which the purchase price can be paid over an agreed period of time by instalments. During the period the goods purchased remain the property of the seller (or the hire purchase company to whom the seller has assigned his… …   Law dictionary

  • hire purchase —    Hire purchase, commonly abbreviated to HP (called ‘instalment credit’ in the USA, where the system emerged in the nineteenth century) plays an important but decreasing role in providing consumer credit, especially for poorer people, for the… …   Encyclopedia of contemporary British culture

  • hire purchase — n. Brit. INSTALLMENT PLAN * * * …   Universalium

  • hire purchase — n [U] BrE HP a way of buying expensive goods by regularly paying small amounts over a period of time American Equivalent: installment plan …   Dictionary of contemporary English

  • hire purchase — noun uncount BRITISH the INSTALLMENT PLAN …   Usage of the words and phrases in modern English

  • hire purchase — ► NOUN Brit. ▪ a system by which someone pays for a thing in regular instalments while having the use of it …   English terms dictionary

  • hire purchase — n. Brit. INSTALLMENT PLAN …   English World dictionary

  • hire purchase — HP A method of buying goods in which the purchaser takes possession of them as soon as an initial instalment of the price (a deposit) has been paid; ownership is obtained when all the agreed number of subsequent instalments have been completed. A …   Accounting dictionary

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