Question

what is the difference between hire purchase and installment purchase

Answer 1

In case of hire purchase agreement if the buyer makes default in payment of Installment the seller can have his or her goods back.
While in installment purchase the seller can only bring a claim against buyer but cannot have his or her goods back.

Answer 2

Answer:

Difference Between Hire Purchase System and Installment Payment System

Hire Purchase System :-

• The ownership remains with the vendor till the last payment of installment is done by the purchaser.

• The Purchaser can't transfer the goods to any third party till the last installment is paid.

• The vendor has a right to take the goods back if the costumer fails to pay the amount.

• Vendor is responsible for the repair and maintenance of the goods till the last installment is done.

Installment Payment System :-

• The ownership is transferred to the buyer in the beginning, after the first installment is paid by the buyer.

• The Purchaser can transfer the goods to any third party.

• The vendor cannot take the goods back if the customer fails to pay the amount, but can claim in court for the recovery of due amount.

• Vendor does not bears any risk regarding repair and maintenance of the goods as it becomes the responsibility of the purchaser to repair and maintain the goods .

hope it may help you...

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