For the purchase of a product, the suppliers, such as a car dealer, also offer financing and in this case there is often talk of hire purchase.

First, a partial deposit must be made and then you pay the rest in installments. With hire purchase, you own the product when you have paid the last installment. This means that if you do not meet your payment obligations during the payment of the installments, you must return the car to the supplier.
The car is then auctioned and if the auction proceeds from the car are not sufficient to pay off the debt, you must take the remaining debt. The interest rate for hire purchase is usually higher than the loan types Personal loan and Revolving credit.