Hire purchase is a type of instalment credit. Typically, the hirer, agrees to take the goods on hire at a predetermined rental for a specified time.
Under the agreement the hirer acquires the property (goods) immediately on signing but ownership is only passes when the last instalment has been paid.
In recent years there has been a reduction in the number of goods sold upon hire purchase as newer, more flexible products have been introduced.
A type of hire purchase may be used to refinance assets already owned by a borrower.