Hire Purchase

• A leasing agreement in which the lessor lets the lessee use an asset for a certain time
period (less that the life of the asset) upon a certain installment (rental) with an
option to purchase the asset by paying the amount or return the good to lessor, after
the lease period.
• Suitable for asset with good resale value.
• The lessor will own the asset till the last installment has been paid and the total
value of the asset is recovered.