Which of the following is not a feature of hire purchase?

The feature of hire purchase that is not correct is "Ownership of goods passes to the customer on payment of a deposit". This statement is incorrect because ownership of the goods passes to the customer only on the payment of the final instalment, which includes both the purchase price and the interest. Until then, the ownership of the goods remains with the seller or the finance company. Hire purchase is a type of financing arrangement where the customer pays an initial deposit and then pays the purchase price plus interest in instalments over a set period of time. It is generally suitable for sales of durable goods such as furniture, appliances, or vehicles.