Hire Purchase

Hire Purchase
The right to buy an asset by the user of the asset according to a pre-agreed method. The user may be the owner for tax purposes. ...

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Hire purchase/credit sale - Methods used to buy goods now and payoff the balance over a period of time. In the case of the former, the goods only belong to the buyer when the final payment is made.

Hire purchase
Hire purchase is a type of credit agreement where you hire goods for a certain amount of time. You do not own the goods until you have made all the payments set out in the credit agreement.

Hire Purchase: The user of the asset is entitled to purchase the asset according to a pre-agreed method. The user may be the owner for tax purposes.
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Hire purchase
A contract to hire goods for a specified period and at a fixed cost. If you pay all the instalments over the agreed period, the goods become your property.

Hire Purchase
A method of buying goods through making installment payments over time. The term hire purchase originated in the U.K., and is similar to what are called "rent-to-own" arrangements in the United States.

Some finance leases are conditional sales or hire purchase agreements. Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP).

Hire Purchase (HP) - you pay a deposit, perhaps between 10% and 40% and then pay off the debt plus interest in (usually monthly or quarterly) instalments. The asset (car) is not legally yours until the last payment is made.

The concept of rent-to-own transactions first emerged in the United Kingdom and continental European countries under the hire purchase model. One of the first rent-to-own retail stores established in the U.K.

A company whose main purpose is the financing of hire purchase transactions and other loans to individuals or businesses....(Read more)
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Finance Lease
An agreement where the leaser receives lease payments to cover its ownership costs. The lessee is responsible for maintenance, insurance, and taxes. Some finance leases are conditional sales or hire purchase agreements.

Secured liabilities: liabilities secured by a fixed or floating charge or by other operation of law such as hire purchase commitments.
Securities: financial assets such as shares, debentures and loan stocks.

See also: Values, Banks, Long position, Tender Offer, Acquisitions