hire-purchase: meaning, definition, pronunciation and examples
lowformal/business
Quick answer
What does “hire-purchase” mean?
A system of buying goods where the buyer pays in installments while using the item, with ownership transferring only after the final payment.
Audio
Pronunciation
Definition
Meaning and Definition
A system of buying goods where the buyer pays in installments while using the item, with ownership transferring only after the final payment.
Refers to the agreement or contract itself, or a method of consumer credit financing commonly used in retail.
Dialectal Variation
British vs American Usage
Differences
In British English, 'hire-purchase' is a standard term for installment buying with ownership transfer. In American English, 'installment plan' or 'installment buying' is used; 'hire-purchase' is rarely used and may sound British.
Connotations
In the UK, it has historical associations with consumer credit for goods like cars and appliances. In the US, it is not commonly recognized, so it may imply a British context.
Frequency
Much more frequent in British English; in American English, 'installment plan' is the preferred term.
Grammar
How to Use “hire-purchase” in a Sentence
buy [something] on hire-purchaseenter into a hire-purchase agreementhire-purchase [noun] e.g. hire-purchase contractVocabulary
Collocations
Examples
Examples of “hire-purchase” in a Sentence
adjective
British English
- hire-purchase agreement
- hire-purchase scheme
Usage
Meaning in Context
Business
Common in retail and finance to describe credit-based sales methods for consumer goods.
Academic
Discussed in economics, law, or consumer studies regarding credit systems and regulations.
Everyday
Less frequent in casual conversation; used when discussing major purchases or credit options.
Technical
Used in legal documents and financial agreements with precise terms on installment payments and ownership transfer.
Vocabulary
Synonyms of “hire-purchase”
Strong
Neutral
Weak
Vocabulary
Antonyms of “hire-purchase”
Watch out
Common Mistakes When Using “hire-purchase”
- Using 'hire-purchase' as a verb (e.g., 'I hire-purchased a car') instead of 'bought on hire-purchase'
- Confusing with leasing, where ownership typically remains with the lessor.
FAQ
Frequently Asked Questions
No, hire-purchase is a purchase method where ownership transfers after final payment, while renting does not lead to ownership.
In American English, 'installment plan' or 'installment buying' is commonly used instead.
It is typically used for consumer goods like vehicles, appliances, and furniture, but not for services or intangible items.
The seller may repossess the goods, and you could lose any money already paid, depending on the contract terms and local laws.
A system of buying goods where the buyer pays in installments while using the item, with ownership transferring only after the final payment.
Hire-purchase is usually formal/business in register.
Hire-purchase: in British English it is pronounced /ˈhaɪə ˈpɜːtʃɪs/, and in American English it is pronounced /ˈhaɪɚ ˈpɝːtʃɪs/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “on the never-never”
Learning
Memory Aids
Mnemonic
Hire-purchase: you HIRE it first, then PURCHASE it after all payments are made.
Conceptual Metaphor
CREDIT IS A BRIDGE TO OWNERSHIP
Practice
Quiz
What best describes 'hire-purchase'?