Hire purchase has numerous benefits when you are looking for the ideal financing options for household items. Whenever you need to improve your home, there are plenty of items that you can spend on. However, at times, one doesn’t have all the cash, they need to purchase particular assets. This means that they cannot make cash purchases. In such cases, hire purchase becomes the best option.
How hire purchase agreements work
In hire purchase, one is only required to have a fraction of the total cost of a given item. After they make the down payment, they will sign an agreement with the seller that allows them to spread the payments over a given period. Payment is done in monthly installments. When one pays the last installment, the ownership of the household item is transferred from the seller to the buyer.
Benefits of hire purchase
Here are some advantages of hire purchase when in the market for household items.
1. Acquire the asset immediately
Unlike in the case of a cash purchase where one needs all the money to acquire a given item, hire purchase allows you to acquire an asset at just a fraction of the total cost. Whether it is a TV, home furniture, or kitchen appliances, you just require a fraction of the total cost. Afterward, you will continue paying installments periodically until you clear the cost.
2. Own an asset at the end of the agreement
In the case of a lease agreement, one doesn’t own any asset even when they complete paying the set installments. On the other hand, if you choose to hire a purchase, you will own a given asset after you make your last payment.
3. Fixed interest rates
Some buyers settle for a term loan when looking to finance a household asset. However, hire purchase has fixed rates for the duration of a set agreement. This means that there are no additional costs after you sign the agreement.
At Kenya Credit Traders, we have a variety of household items available on hire purchase terms. Also follow us on Facebook, Kenya Credit Traders for the latest household items in Kenya, available on Hire purchase.