Hire-purchase for Dummies
noun
What does Hire-purchase really mean?
Hire-purchase is a term that might sound a little fancy but it's actually something we come across in our everyday lives. It's kind of like a special way of buying something without having to pay all the money upfront. Let's say you really want to buy a new bike but you don't have all the money for it right now. That's when hire-purchase comes to your rescue!
When you use hire-purchase, it's like you're borrowing the bike from the seller for a specific period of time. You won't technically own the bike right away, but you'll be able to use it as if it were yours. The best part is that you don't have to worry about paying for the whole bike upfront. Instead, you can pay for it little by little every month.
But here's the catch, because the seller is letting you use the bike before you fully pay for it, they still want to make sure they get their money. So what they do is, they charge you a little extra each month. This extra amount is a small fee for letting you use the bike without fully paying for it yet. It's kind of like a rental fee or an installment fee. Once you finish paying all the money, that's when the bike finally becomes fully yours!
So in a nutshell, hire-purchase is a way of buying something where you can use it right away, even if you don't have all the money. By making regular payments, you slowly own the item over time. It's like riding a bike that you borrowed, but as you pedal along, you're also paying off the price of the bike.
Revised and Fact checked by Elizabeth Martin on 2023-10-29 10:10:39
Hire-purchase In a sentece
Learn how to use Hire-purchase inside a sentece
- When you want to buy a new bicycle but don't have all the money right now, you can use hire-purchase. This means that you can take the bicycle home and pay for it little by little every month until you have fully paid for it.
- Imagine you want to have your own laptop for school but you can't afford to pay for it all at once. With hire-purchase, you can take the laptop home and pay some money each month until you have paid for it completely.
- Let's say you need a new TV for your living room. Instead of paying for it all right away, you can use hire-purchase. This means you can bring the TV home and pay a small amount of money each month until you have finished paying for it.
- If you want to buy a new dress but don't have enough money, you can use hire-purchase. This allows you to take the dress home and pay for it in small amounts every month until you have fully paid for it.
- Suppose you want to have your own musical instrument but can't afford to buy it immediately. With hire-purchase, you can bring the instrument home and pay for it gradually over time, making it easier for you to own it.
Hire-purchase Synonyms
Words that can be interchanged for the original word in the same context.
Hire-purchase Hypernyms
Words that are more generic than the original word.
Hire-purchase Regions
Regions where the word is used.