Question

Difference between hire purchase and installment buying

Answer 1

Distinguish Between Hire Purchase System and Installment Payment System? ... However, the ownership of the goods remains with The seller (Hire Vendor) until the hire purchaser has made all the payments. Eachinstallment paid by the hire purchaser is considered as hire charging for using the asset.

Answer 2

In hire purchase the ownership of the goods passes to the buyer on the payment of last Installment while in case of installment purchase the ownership of the goods passes to the buyer immediately. 2.