Are you considering a hire purchase deal for assets to use in your home or business? Is it right for you with KCT as a hire purchase partner? As with every financial decision, before opting for a hire purchase deal, it is vital to determine the benefits and make the right decision.

How does hire purchase work?

A hire purchase agreement is a finance option allowing you to spread the cost of assets you intend to purchase. When one takes out a hire purchase contract, they deposit as little as 10% of the value of the items they plan to acquire. One clears the cost of the items through daily, weekly, or monthly payment installments over a fixed duration. The duration of the hire purchase agreement depends on the percentage of money that one pays upfront as a down payment, your income, and several other factors.

Benefits of hire purchase

Before signing a hire purchase deal, one will want to determine the benefits they are set to enjoy. Here are some of the advantages.

·         Spread the cost

Hire purchase is the right option if you do not intend to pay for assets upfront. After paying the deposit, one clears the balance in periodic payments. These payments can be daily, weekly, or monthly. One also enjoys the flexibility in how much they will pay as a daily, weekly, or monthly installment, and the duration that the agreement will last.

·         Access new high-quality assets

Hire purchase makes it possible for home and business owners to acquire expensive and quality assets. When buying in cash, you can be limited in choice by the amount of cash you can spend. With hire purchase, you can acquire assets that are expensive right away and pay for them later in the form of installments.

·         Own assets at the end of the hire purchase agreement

You do not obtain the title of the assets you acquire on hire purchase terms immediately after signing the agreement. The ownership remains with the hire purchase dealer. However, after one pays the last installment, the ownership of the goods is transferred to them.

·         Enjoy fixed interest rates

One also benefits from fixed interest rates when one acquires goods on hire purchase. Changes in bank and base rates will not affect the total cost of the items you are acquiring. This allows you to budget accordingly for the payments since you can determine the total cost of the items upfront.

Get the best hire purchase deals at Kenya Credit Traders.