Differences between Hire purchase and Credit buying

Hire Purchase

Credit buying

i)The hire purchase price is higher

than cash price

Credit price is usually the same as the

cash price

ii)The buyer does not become the

owner of the product on possession

ii)The buyer becomes the owner of

the product on taking possession

iii)The buyer cannot resell the product

iii)The buyer can resell the product

iv)There is down payment

iv)There is no down payment

v)There is an agreement to hire with

an option to buy or return the good

v)There is no option of returning the

goods

vi)Goods can be repossessed in case

of default in payment

vi)Goods cannot be repossessed