What is the meaning of Hire Purchase?

Hire Purchase-

• A hire purchase is the contract between a seller and buyer whereby a seller agree to part the possession of gods in favor of other party.
• In hire purchase there are mainly 3 parties- i)seller ii)buyer iii) financer
• For hire purchase the transaction will execute and start with down payment.
• For hire purchase a regular installment is to be paid which includes cash price + interest.
• There is a proper agreement between buyer and seller for depreciation benefit can be used.
• In hire purchase, the ax benefit will be available with interest and on depreciation also.