BANKING AFFAIRS

Detailed explanation-1: -Quality of asset purchased does not give a difference between a hire purchase and a nominal purchase.

Detailed explanation-2: -Expert-Verified Answer While in hire purchase the asset is acquired with the down payment and the rest of the money is paid in parts with the interest. In an ordinary purchase, the ownership of an asset is transferred immediately but in the hire purchase, the ownership gets transferred after the payment of last due.

Detailed explanation-3: -The property in goods passes to hirer along with its possession-this is not correct in relation to hire purchase.

Detailed explanation-4: -A hire-purchase (HP) agreement is often offered when you buy a car or furniture. Unlike instalment credit, you don’t own the goods until you’ve made the final payment. This means that, in effect, you’re hiring the goods with an option to buy them.

Detailed explanation-5: -What’s the difference between hire purchase and leasing? The key difference between a hire purchase (HP) contract and leasing a car is that you will own your car at the end of an HP contract. In contrast, when you lease a car once the contract term is up you’ll hand the car back.