Hire purchase continues to take the Kenyan financing market by storm. The number of consumers opting for hire purchase agreements is on the rise as more people understand how hire purchase works. The many benefits of hire purchase contracts in comparison to other financing options is also part of the reasons why more people keep adapting hire purchases. However, one might be curious to know hire purchase innovations to expect. If you are looking to understand the future of this financing model, it is imperative to first understand the growth in the past.

The Rise of Hire Purchase Agreements

Hire purchase has without a doubt seen transformation in comparison to previous years. There are more consumers and businesses signing hire purchase agreements than in the past. This can be attributed to several factors.

One of the reasons behind hire purchase growth is the internet. More people have learned about online shopping and the benefits it offers. Online shopping offers customers the chance to shop without time or location limitations. As long as you have an internet connection, you just get online and find items you plan to purchase. It is the same case with hire purchase deals. Nowadays a customer can easily find information about hire purchase deals online and understand how the agreements work.

Hire purchase has also seen a lot of growth in recent times as a result of the wide scope of items available on hire purchase terms. In the past, hire purchase was mainly commercial, where it was for businesses looking to acquire machinery. Individuals looking to acquire high-ticket items such as cars and land also benefitted from hire purchase. However, in modern times, there is a wide variety of items available on hire purchase terms. Phones, furniture, appliances, TVs, Motorbikes, and many other items are readily available to the modern consumer.

The Future of Hire Purchase

Hire purchase is likely to keep evolving as technology keeps changing every day. In modern times, some of hire purchase agreements processes require physical presence. However, in the future, it is more likely that everything will be done online. Customers can provide and upload documents, sign the agreement online, and wait for delivery at the doorstep. More software development will also make the payment process seamless, ensuring that buyers do not incur penalties as a result of late payments. Artificial intelligence is also becoming common. It may affect hire purchase.

Learn more about hire purchase deals here. Kenya Credit Traders is your home of hire purchase deals.

A hire purchase agreement is a credit contract between a buyer and seller. A hire purchase deal aims to allow homeowners or business owners to acquire assets on credit and pay the total cost in installments. These contracts are similar to rent-to-own agreements. The dealer transfers the title to the buyer after the final payment. Hire purchase is the best option for individuals with poor credit ratings. Hire purchase offers favorable interest rates. The installments are fixed allowing you to plan and manage your finances.

Legalities Guide on Hire Purchase Agreements

It is important to learn the guidelines provided in the law when signing a hire purchase agreement. The first question about hire purchase legalities is determining whether hire purchase is legal.

In Kenya, hire purchase is legal and thus an accepted payment method for assets. The Hire Purchase Act provides guidelines on hire purchase deals in Kenya. It is thus within the law to hire items from licensed dealers in Kenya and pay for the assets on hire purchase terms.

Legal aspects of hire purchase deals

For a hire purchase agreement to be legally enforceable, it must include several details.

1. The name and address of the buyer and the seller: Both parties provide information about their address in the hire purchase agreement before signing it.
2. The date of the hire purchase agreement: A hire purchase contract must indicate the date the agreement was signed by both parties. In most cases, this is also the date when the buyer acquires the items from the dealer.
3. The items in question: A legal hire purchase agreement also indicates the items that the hirer acquires from the seller. The agreement should include a proper description of the items.
4. The cost of the items: The seller is to disclose the costs to the buyer before signing the hire purchase agreement. In some cases, this includes the cash purchase price. The amount to be paid in each installment also needs to be indicated in the agreement. The agreement should also specify the final cost of the assets.
5. The payment dates for each installment and any other charges also ought to be indicated on the agreement.
6. It is also a requirement to indicate any additional fees and charges.
7. It is also important to check whether the agreement specifies the withdrawal period. This is the duration within which the buyer can vacate the agreement.

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If you are looking to purchase items on hire purchase terms in Kenya, there are chances you will come across Kenya Credit Traders as one of the most popular options. However, as is the case with other companies, it is vital to learn about KCT home of hire purchase. Investing time and effort before any financial decision is advisable to save you money in the long run. Here’s a comprehensive review of Kenya Credit Traders and why the dealer is popular in the country.

What makes KCT stand out among other hire purchase dealers

1.      Offering a wide variety of household items

One of the reasons why KCT is the home of hire purchase deals is the variety of items they offer on hire purchase terms. When you are looking to acquire household furniture such as dining sets, beds, sofa sets, and dining sets, Kenya Credit Traders is your dealer.

If you want to improve home entertainment by acquiring a Digital TV, a smart TV, or a home theater, KCT is your best option. When you plan to upgrade your kitchen by acquiring appliances such as fridge, chest freezers, cookers, microwaves, or gas cylinders, they are available at KCT. You can also acquire building materials and agriculture equipment at the dealer. Almost any item you need to make your home functional is available at Kenya Credit Traders.

2.      KCT has branches all over the country

Kenya Credit Traders aims to make hire purchases a hassle-free process for consumers. The process of finding items that are available is easier and more convenient considering that they have a website. The website lists out categories of various items and you can view them even before physically visiting a branch. They have shops all over the country. When you need assets, it is easier to acquire them by visiting a KCT branch near you.

3.      The company has the best hire purchase policies

One of the best reasons to choose a hire purchase deal is the chance to acquire assets even when you do not have all the cash. Kenya Credit Traders makes this possible by requiring between 10% and 15% as the down payment. The interest rates are also competitive and favorable, making hire purchase flexible and convenient for the buyers.

Find out more about Kenya Credit Traders here.

When out to invest in household items, you will always have options. However, any financial decision one makes will have advantages and disadvantages. Hire purchase has become a common financing option for homeowners looking to upgrade assets. Dealers such as Kenya Credit Traders have a wide variety of furniture, home entertainment gadgets, electronics, and other household items available on hire purchase terms.

Why Choose Hire Purchase for Household Items

There are many benefits a homeowner enjoys from choosing a hire purchase deal for household items. One of the biggest benefits of hire purchase is dividing the cost over a duration. When you choose to pay for assets on hire purchase terms, you spread the cost to several months. Splitting the cost into flexible and affordable installments ensures that you do not strain your finances while acquiring new assets.

Another key benefit of hire purchase is that you will be the owner of the assets at the end of the hire purchase agreement. Hire purchase is different from leasing. When you make the last payment to the dealer, they transfer ownership of the assets to you.

How To Handle Hire Purchase Negotiations and Get the Best Deal

Before signing the hire purchase agreement, it is essential to focus on getting the best deal. As a customer, the best deal is not only that is cheap. It is a deal that gives you value for money. Here are some tips to help you negotiate hire purchase deals.

1.      Prepare, prepare, and prepare

Information about hire purchase deals is available online. Just like any other financial decision, you do not walk to a hire purchase dealer and sign the agreement. Invest time and effort learning the legalities of hire purchase agreements, terms and conditions, interest rates, and other aspects of the contract. Having the essential information is your best weapon against exploitation by hire purchase dealers.

2.      Duration of the hire purchase contract is an essential consideration

The duration of a hire purchase contract has an effect on the interest rates and the total cost. Repaying in a shorter duration saves your money while a longer contract means a higher total cost. Always settle for a hire purchase contract that works for your income and leaves you enough cash for other expenses.

3.      Do not be afraid to negotiate and ask questions

It is advisable to engage the hire purchase dealer to ensure you understand the hire purchase agreement. Always ask questions about the interest rates, hidden charges, and other terms and conditions you do not understand. This will save you money in the long run.

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If you are looking to acquire assets on hire purchase terms, there is no doubt you will be eager to find the best company to work with. Finding a reliable, reputable, and trustworthy hire purchase company determines the quality of services you are about to enjoy. Investing your time to find out the best dealer is as important as finding quality products.

Top considerations for choosing a hire purchase company

As hire purchase becomes popular in the country, the number of companies joining the industry is also on the rise. While this means customers have options, it also makes the task of finding a good hire purchase dealer more difficult. However, here are some core aspects to check before signing a hire purchase agreement with any given company.

1.      Relevant licenses

One of the ways to guarantee quality services is working with a hire purchase company with the relevant licenses. Most buyers that end up in the hands of scammers overlook the importance of checking the licensure of the dealers. Any hire purchase company with a license has to provide services within the set regulations.

2.      Reputation

Another vital consideration when selecting a hire purchase shop to buy from is their reputation. One can only learn about the quality of services a given company offers through customers who utilized the services of the company in the past. In modern times, it is easy to check how customers feel about a given company by checking online reviews and ratings. When looking to determine KCT hire purchase customer experience, checking reviews on independent websites will be insightful. Social media is also a powerful tool when it comes to reputation. Check the company’s Facebook page to see whether there are complaints from previous customers.

3.      The company’s policies

It is also vital to check the policies of a hire purchase dealer before choosing their services. No buyer will want to settle for a company that doesn’t value customer experience. The best hire purchase companies have policies that protect the buyers and also guarantee them quality services. The culture within the company depends on its policies. How the staff handles the process tells you a lot about their customer experience. KCT hire purchase customer experience is one of the reasons the company stands out in the Kenyan hire purchase market.

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Hire purchase is undoubtedly one of the best asset financing options in the Kenyan market. There is a growth in the number of consumers choosing hire purchase over other financing options. The many benefits of hire purchase terms motivate consumers to choose this option.

Why You Should Consider Hire Purchase Agreements

A hire purchase agreement involves acquiring assets on a fraction of the total cost and splitting the remaining fraction into installments. The total price of items in hire purchase is higher than a cash purchase. However, the convenience that comes with the agreements and other financial benefits outweigh the issue of cost.

The number one reason to consider payments on hire purchase terms is the chance to acquire quality items. Acquiring household goods is a long-term investment, considering that they affect the quality of life. Hire purchase offers you a chance to get quality furniture, household appliances, gadgets, and electronics without compromising due to high cost.

Here are some hire purchase success stories to give you a clear picture of the benefits of hire purchase.

Hire Purchase Success Stories

There are some reviews and success stories that customers provide after choosing to acquire assets on hire purchase. Here are a few highlights.

·         Homeowner 1

One of the homeowners providing testimonials about hire purchase expressed how hire purchase helped furnish their home. The homeowner invested a lot of his money in the construction of a new home for his family. After completion, they did not have the cash to purchase household furniture for the home. However, through hire purchase, they were able to acquire quality furniture and immediately move to their new home. The homeowner recommends hire purchase as the best way to get access to quality items when one doesn’t have all the cash.

·         A young shopper

Another testimonial comes from a tech-savvy young shopper. She mentions that the aim was to improve her home entertainment experience. At first, she acquired a Smart TV, to give her access to online movie streaming services. She hadn’t been employed for long and did not have enough savings to acquire her dream TV. However, she opted to hire purchase the smart TV from Kenya Credit Traders and paid a fraction of the cost every month until she completed the payment. Currently, she is on another hire purchase agreement, paying for a home theater.

·         A small business owner

A small business owner running a hotel wanted a refrigerator to provide cold refreshments to their customers. Choosing a hire purchase meant they quickly acquired one from KCT, even when they did not have enough savings to pay in cash. Spreading the cost over several months also saved the business by protecting cash flow.

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Hire purchase is one of the best asset financing options available. It is becoming popular in the country. This is partly because there is no limit on the assets a consumer or a business owner can acquire on hire purchase terms. Homes, cars, and other assets worth millions can be paid on hire purchase terms. Consumers can also purchase items such as electronics, furniture, and even construction materials using hire purchase terms. The wide variety of possibilities that come with hire purchase is one of the reasons it is becoming a popular scheme in Kenya.

Reasons To Consider Hire Purchase Solutions in Kenya

Many benefits come with hire purchase when finding new assets for your home or business. Hire purchase is one of the quickest ways to get hands on assets when one doesn’t have all the cash. This is because dealers require a small fraction of the cost as a down payment to deliver the items. You only require paying as low as 15% of the total cost of the items and you can take the asset home. You will have the right to utilize the asset as you make the payments to clear the balance. The balance is split over a given duration. Hire purchase allows you to spread the cost.

It is also worth considering hire purchase as it is a chance to access quality products. Lack of enough funds at times forces customers to settle for low-quality items that they deem affordable. However, with a hire purchase, you quickly acquire quality assets as you do not have to pay in cash. Hire purchase deals make assets affordable and accessible.

Why Kenya Credit Traders Is Your Trusted Hire Purchase Dealer in Kenya

Despite the many benefits of hire purchase, you can only enjoy them when you work with a reliable hire purchase dealer.

One of the considerations when finding a credit dealership is whether they have relevant licenses. A licensed hire purchase company will provide services within the confines of the hire purchase laws. The laws are designed to protect the consumer as well as the hire purchase dealer.

The longevity of Kenya Credit Traders is also part of the reasons they are considered the best hire purchase company in the country. The dealer has not only been in the market for years, but they also have branches all over the country. This makes their services accessible and the assets you require for your home.

Customers on the lookout for asset financing options will always have choices. However, an option that stands regardless of the value of the assets is a hire purchase. Hire purchase is a popular option for consumers as well as business owners looking to purchase new assets.

What Is Hire Purchase?

Hire purchase is a financing option where a buyer acquires assets by paying only a fraction of the cost. When one determines the asset they need, they approach a hire purchase dealer with as little as 15% of the total cost. After paying this down payment, the customer takes home the asset and has a right to use it. However, they do not immediately get the ownership rights of the assets. A dealer transfers ownership to the buyer after they pay the total cost of the assets.

Hire Purchase Benefits

Hire purchase agreements come with plenty of benefits. If you are looking to purchase items for your home or business, here are some of the pros of settling for a hire purchase contract.

1.      Access quality products.

Hire purchase ensures that you are not limited in terms of quality assets. In most cases, when making a cash purchase, you are limited to the available resources. This can make buyers settle for low-quality assets to stay within their budget. Hire purchase opens a door of possibilities on the other hand. You have a chance to spread the cost over several months, and this makes it possible to acquire items that would otherwise be unaffordable.

2.      Have better control over your finances

Another reason to consider hire purchase deals is that they give you better control over your finances. Hire purchase allows you to spread the cost of assets. This means you only pay a small fraction of the cost every month. Hire purchase thus allows you to balance between investing in new assets, spending on expenditure, and making savings.

3.      Own assets at the end of the hire purchase agreement

The best about a hire purchase agreement is that you end up as the owner of the assets at the end of the contract. Unlike leasing where you pay installments and return assets at the end of the agreement, in hire purchase you retain the assets.

Why Choose Kenya Credit Traders for Your Hire Purchase Needs

If you want the best hire purchase deals in Kenya, Kenya Credit Traders (KCT) is your best option. Apart from being reliable, experienced, and reputable, KCT offers deals customized to suit your needs. Follow us on Facebook.

Are you looking for hire purchase deals on electronics, home furniture, or appliances? Are you wondering about the best hire purchase providers in Kenya? Here are some wonderful tips to guide you.

Hire purchase in Kenya

Hire purchase remains one of the best payment options in the country. There is a growth in the number of businesses accepting hire purchase terms. The hire purchase agreements have a variety of names such as lipa later, lipa pole pole, and lipa mdogo mdogo. Consumers can access various assets on hire purchase terms, such as household furniture, electronics, kitchen appliances, and even building materials. It is thus vital to invest effort and learn how hire purchase works.

How hire purchase in Kenya works

A hire purchase agreement entails paying a fraction of the cost as a down payment. After paying the deposit, the customer takes home the asset. They will clear the balance in the form of installments. In Kenya, customers make daily, weekly, or monthly payments as installments. The opportunity to spread the cost is appealing to any consumer, thus the growth in hire purchase agreements.

Finding hire purchase best providers in Kenya

You can only enjoy the many benefits of a hire purchase deal when you work with the best dealers. Here are some of the reasons why KCT stands out among hire purchase best providers in Kenya.

1. A low amount is required as a deposit

When you choose Kenya Credit Traders as your hire purchase dealer, you enjoy paying affordable amounts as the deposit. KCT accepts as low as 15% of the total cost of the items as a downpayment. This enhances the affordability of the various items we sell on hire purchase terms.

2.      Flexible and affordable installments

Another benefit you will enjoy by choosing KCT is flexible installments. One of the primary benefits of hire purchase is making assets affordable by spreading the cost. At KCT, we offer hire purchase agreements that come with flexible and affordable terms.

3.      Guarantee for quality items

It is also advisable to consider purchasing household items on hire purchase terms at Kenya Credit Traders as they only sell quality products. The products available on hire purchase terms usually have a warranty. Investing in quality assets protects you from coming back to the market and spending more money to replace or repair assets.

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