What is hire purchase?

Hire Purchase

Hire purchase (abbreviated HP, colloquially sometimes never-never) is the legal term for a contract, in which 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 Australia, China, India, Jamaica, Japan, Malaysia, New Zealand, and South Africa. It is also 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. 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. In Canada and the United States, a hire purchase is termed an installment plan; other analogous practices are described as closed-end leasing or rent to own.

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Some articles on hire purchase:

Shogun Finance Ltd V Hudson - Facts
... A rogue went to buy a Mitsubishi Shogun on hire purchase ... Under s.27 Hire Purchase Act 1964 a non-trade buyer of a car who buys in good faith from a hirer under a hire purchase agreement becomes the owner, so Mr Hudson would have been the owner if the hire purchase ...
Hire Purchase in Malaysia
... Hire purchases agreement are commonly known as H.P agreement in Malaysia and it is used by financial institutions in Malaysia to fund the purchase of consumer goods, vehicles and other ... In Malaysia, The legislation governing hire purchase transactions is the Hire Purchase Act 1967, which came into force on 11 April 1968 after hire purchase became ... Purchasing cars is the most common type of hire purchase agreement in Malaysia and the repayment could served up to 9 years from the date of ...
Consumer Credit Act 1974 - Provisions of The Act - Part V: Entry Into Credit or Hire Agreements - Withdrawals
... These are similar to those found in the Hire-Purchase Act 1965, but cover all consumer credit and consumer hire agreements rather than the hire-purchase and instalment sale agreements previously covered ... The right to cancel a confirmed agreement was introduced by the Hire-Purchase Act 1964, mainly to frustrate doorstep salesmen who would take advantage of an unsuspecting person ...
Royscot Trust Ltd V Rogerson - Facts
... to get a second hand Honda Prelude on hire purchase ... Royscot would not have done this as its policy was only to lend money for hire purchase if 20% of the total cost was paid in the deposit (1200/7600 = 15.7%). 1987 he sold the car off, dishonestly, as he knew it was not allowed under the terms of the hire purchase agreement ...

Famous quotes containing the words purchase and/or hire:

    Riches are valuable at all times, and to all men; because they always purchase pleasures, such as men are accustomed to, and desire: Nor can any thing restrain or regulate the love of money, but a sense of honour and virtue; which, if it be not nearly equal at all times, will naturally abound most in ages of knowledge and refinement.
    David Hume (1711–1776)

    Some of the offers that have come to me would never have come if I had not been President. That means these people are trying to hire not Calvin Coolidge, but a former President of the United States. I can’t make that kind of use of the office.... I can’t do anything that might take away from the Presidency any of its dignity, or any of the faith people have in it.
    Calvin Coolidge (1872–1933)