Hire Purchase

Hire Purchase (HP) is a financing option that allows individuals to acquire goods, such as vehicles or appliances, by paying for them in installments, rather than in a lump sum. The buyer pays an initial deposit, followed by regular payments over an agreed period. While using the item, ownership remains with the seller until all payments are completed. Once the final payment is made, ownership transfers to the buyer. This method provides a way to make big purchases more manageable while spreading costs over time. It’s commonly used for items that may be too expensive to buy outright.