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What does it mean to have hire purchase agreement?
A hire-purchase agreement therefore means an agreement under which goods are let on hire and hirer has option to purchase them according to the conditions of the contract. It includes an agreement under which possession of goods is delivered to hirer and the hirer can use the goods and terminate the agreement at any time.
How to get the best hire purchase arrangement?
To get the best hire purchase arrangement, buyers must have a strong credit profile. If they do not have a strong profile, vendors may decide not to work with the business or household attempting to make a purchase. Those with subpar credit scores will find that if they are approved, the interest rates will be higher than if they had good credit.
What are the advantages of a hire purchase plan?
A hire purchase arrangement is beneficial because it reduces the risk of the provider for the consumer goods involved. Because the ownership of the item does not officially transfer until all payments are made, this plan offers protection to the vendor for an unsecured item because it can be repossessed.
What was the Hire Purchase Act of 1967?
In Section 2 (l) of the Hire Purchase Act 1967, hire purchase is defined as “A letting of goods with an option to purchase and an agreement for the purchase of goods by installments (whether the
Last Update: Oct 2021
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