The Hire Purchase Business, Is It a Win-Win Situation
Dr. Charles Kombo Okioga

Abstract
Hire purchase is a system by which a buyer pays for a thing in regular installments while enjoying the use of it. During the repayment period of ownership for the item does not pass to the buyer. Upon the full payment of the hire purchase facility, the title passes to the buyer. Hire purchases can accelerate the pace of growth and development. First, the increase in spending has the effect of increasing the multiplier effect on income in addition to encouraging aggregate investment. Increased income raises the level of expenditure further thus setting in motion a virtuous cycle of growth in consumption, investment, income, and development. Hire purchase also helps to sustain growth by making it possible for client to resist the downward adjustment of their consumption during a fall of their income. This paper discusses the contribution of Hire purchase to the organization and the client looking at the pros and cons to discern whether it is a win- win situation for the hire purchase companies, the client and economic growth. The study makes conclusion on the effect of hire purchase on the client and recommends possible actions to make it a win-win situation. The study used ANOVAs and regression analysis both simple and multiple to study the effect of independent variables on the dependent variable.

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