What does hire purchase allow a consumer to do?

Hire purchase is a financial arrangement that allows a consumer to acquire goods through a series of regular payments over a specified period, after which ownership of the item is transferred to them. This method enables individuals to access products that they may not be able to afford upfront, effectively spreading the cost over time.

By making regular payments, the consumer enjoys the use of the goods while gradually paying for them, which aligns perfectly with the concept of hire purchase. This is particularly useful for significant purchases like vehicles or home appliances, where the buyer can utilize the item immediately while ensuring payment flexibility.

The other options present different types of financial arrangements or practices that do not encapsulate the essence of hire purchase. For instance, paying in full before ownership negates the fundamental process of hire purchase, as it involves upfront payment rather than installment payments. Borrowing money from friends doesn’t pertain to the structured nature of hire purchase, and purchasing goods without a payment plan does not involve any deferred payment mechanism, which is a key characteristic of hire purchase. Thus, the essence of hire purchase is captured in the ability to make regular payments until ownership is attained.