Hire purchase allows a party to acquire goods belonging to another by paying an initial deposit and subsequent installments over a set period. Historically, hire purchase has financed commercial vehicles for transport operators. The goods do not legally become the property of the acquirer until all installments have been paid.

1. Hire Purchase
A hire purchase contract allows one party to acquire possession of
goods belonging to another party by paying initial deposit
followed by a number of instalments over a specified period of
time.
Historically, hire-purchase finance has been associated with
financing of commercial vehicles for road transport operators.

2. Regarding Aspects ofOwnership
• The goods do not become the legal property
of the acquirer until after the final instalment
has been paid.