Hire purchase is a financial arrangement that allows individuals to acquire goods, such as furniture or vehicles, by paying for them in installments over time. The buyer makes an initial deposit and then pays the remaining balance in regular payments, usually monthly. During this period, the buyer can use the item, but ownership remains with the seller until all payments are completed. Once all installments are paid, the buyer gains full ownership of the item. This method is popular because it enables people to obtain expensive items without needing to pay the full price upfront, making it more accessible for many consumers.