Phrase Used in a Hire Purchase Agreement Crossword Clue

If you`re currently trying to solve a crossword puzzle that includes the phrase used in a hire purchase agreement, you may be stumped. But don`t worry, with some knowledge about hire purchase agreements and some research, you can easily find the answer.

A hire purchase agreement is a common financing option for purchasing items such as cars, furniture, or appliances. It`s an agreement between a buyer and a seller where the buyer agrees to pay for the item over a set period of time. The buyer takes possession of the item, but the seller retains ownership until the buyer pays the full amount.

The phrase used in a hire purchase agreement that you may be looking for is „instalment plan.” This refers to the payment plan that the buyer agrees to make over a set period of time. The payments are usually made on a regular basis, such as monthly or bi-weekly, and they include both a principal amount and interest.

The use of an instalment plan in a hire purchase agreement benefits both the buyer and the seller. For the buyer, it allows them to purchase the item they need without having to pay the full cost upfront. Instead, they can spread the payments out over a period of time and manage their cash flow more effectively. For the seller, it provides a steady stream of income and helps to move inventory.

In addition to instalment plans, there are other phrases and terms that may be used in a hire purchase agreement. These include the total cost of the item, the down payment amount, the interest rate, and the length of the payment term. It`s important for both the buyer and the seller to understand all of the terms of the agreement before signing it.

In summary, the phrase used in a hire purchase agreement that you may be looking for is „instalment plan.” This is the payment plan that the buyer agrees to make over a set period of time, including both principal and interest. Understanding the terms of a hire purchase agreement is important for both the buyer and the seller, and can help ensure a successful transaction.