Hire purchase is advantageous to the seller in that?

A. it elevates his living standard
B. his turnover will increase
C. people pay on installment
D. it enhances high level of patronage

Correct Answer:

Option B – his turnover will increase

Explanation

Advantages of hire purchase to the seller:

1. Increases sales and thus profits.
2. It encourages impulse buying.
3. They get commission from Finance Houses.
4. Insurers good during the Hire Purchase period.
5. The seller has the right to repossess the goods if the buyer defaults on payment.