Hire Purchase Agreement (UK)

A Hire Purchase Agreement in the UK is a finance arrangement that allows you to acquire an asset, like a car or expensive equipment, by paying in installments. You "hire" the item while making payments over time. Once all payments are made, you gain ownership of the asset. Typically, you pay an initial deposit, followed by regular monthly payments that usually include interest. If you fail to keep up with payments, the lender can repossess the item. This agreement is a way to spread the cost of an item without needing the full purchase price upfront.