What is the difference between the Installment and Hire Purchase?

Question

What is the difference between the Installment and Hire Purchase?

Answer 1

Best Answer - Chosen by Voters

While in Hire Purchase system, the title before you pay the
last installment, remains with the Hirer (i.e. one who
gives something on HPS). Installments paid are considered
as payment towards the usage of the article hired, until
the last installments. If you default in paying even the
last installment, the hirer can take away the article,
without having to repay any installment or part thereof to
the hiree. Only afer the payment of the last instalment,
the ownership (title) to goods pass on to the hiree.

In case of Installment option, the title to goods is
considered to have passed to the hiree on the payment of
the first installment only. Every installment is considered
to be the payment towards the value of the goods and not
for the usage alone. In case of default seller can enforce
the hiree to sell the product and make good the remaining
installment. But the hirer cannot claim a good title to the
goods.

:o)

Answer 2

Nothing, in effect.

In both the items is sold to a third party lender that pays the seller. You then pay the third party an amount each month for the item, which you have already taken delivery of. In both instances you do *not* own the item until you have finished paying for it - effectively you have a non-commercial rolmalpa clause at work.

Why are you asking that question here?

Answer 3

installment means paying the amount to borrower in small small amount means not paying the whole amt one time and
hire purchase means paying the whole amt to borrower

Source(s):

R