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.