Hire Purchase Agreement
Definition of 'Hire Purchase Agreement'
Hire purchase agreements are often used to purchase large items, such as cars or furniture. They can be a convenient way to finance a purchase, as they allow buyers to spread out the cost over time. However, it is important to be aware of the terms of the agreement before signing, as hire purchase agreements can often come with high interest rates and fees.
Here are some of the key features of a hire purchase agreement:
* The buyer makes a down payment and then pays the remaining balance in monthly installments.
* The seller retains ownership of the goods until the buyer has paid off the full amount.
* Hire purchase agreements can be used to purchase large items, such as cars or furniture.
* Hire purchase agreements can often come with high interest rates and fees.
If you are considering a hire purchase agreement, it is important to compare different lenders and terms before making a decision. You should also make sure that you understand the terms of the agreement before signing.
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