At the end of a hire purchase if all payments are made?

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Multiple Choice

At the end of a hire purchase if all payments are made?

In a hire purchase, you have the right to use the vehicle and are responsible for it, but the finance company holds legal ownership while payments are being made. The important point is that ownership passes to you once all payments have been completed. So after the last instalment (or the final option-to-purchase payment, if applicable), you become the legal owner of the vehicle. The other statements don’t fit because ownership isn’t transferred automatically during the term, there isn’t a automatic return of the vehicle to the dealer, and the vehicle isn’t sold to a third party simply because payments finish.

In a hire purchase, you have the right to use the vehicle and are responsible for it, but the finance company holds legal ownership while payments are being made. The important point is that ownership passes to you once all payments have been completed. So after the last instalment (or the final option-to-purchase payment, if applicable), you become the legal owner of the vehicle. The other statements don’t fit because ownership isn’t transferred automatically during the term, there isn’t a automatic return of the vehicle to the dealer, and the vehicle isn’t sold to a third party simply because payments finish.

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