Rent buy

A hire purchase is often used to finance a car. After a down payment, the remaining amount of the purchase price is paid in installments. After paying the last installment, you own the car.

A characteristic of this form of financing is that if you can no longer pay the monthly payment, you have lost the car. If the proceeds of the car are not enough to pay off the remaining debt, you will continue to owe the remaining amount.

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