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Hire purchase is one of the best financing options in the Kenyan market. Buyers looking for high-value assets such as cars, furniture, and electronic gadgets find hire purchase a favorable method of acquiring them. However, to enjoy quality services, one needs to find a trusted name in the hire purchase business.

Why opt to hire purchase?

Most buyers choose cash purchases when buying items, but this comes with some downsides, especially in the case of high-value items. Take an example of purchasing an Android TV. A good smart or Android TV will cost you an average of Ksh 50000. Spending such an amount at once will mean that you spend your savings or even your entire salary. This leaves you without money to spend in the case of an emergency.

On the other hand, if you choose a hire purchase, you have a chance to spread the cost. At Kenya Credit Traders, when one purchases an Android TV, we spread the cost up to 20 months. Since you will be paying a small amount of cash every month, you will be left with enough cash for all other expenses, while you have your dream TV in your home.

Why choose Kenya credit traders?

Before choosing any hire purchase dealer, one wants to ensure that they will enjoy quality services. This will require the buyer to spend some time and effort determining a reliable hire purchase trader. Here are some vital considerations.

The number one factor to check in a hire purchase dealer is whether they have the necessary licensing. Do not transact with any hire purchase dealer that doesn’t have the necessary licenses from government agencies to offer the services. If a trader is licensed, it is an indication that they offer their services within the set regulations. Kenya Credit Traders is a trusted name in the hire purchase industry, with more than 50 shops around the country. They have the necessary licenses which guarantee that you will enjoy good services when working with them.

The reputation of a hire purchase dealer is also a vital consideration before opting to purchase from them. Invest some effort and time checking online reviews to determine the quality of services the dealer has provided to their past clients. You can find out some testimonials from our past clients here on our social media page.

Are you in the market for household goods? Do you need quality items that improve your home’s functionality and comfort? Here’s why need to choose Kenya Credit Traders (KCT) for hire purchase deals.

Any homeowner looking to improve their living space needs to find the best items on the market. If you are looking to enhance the functionality of your living space, you will consider finding quality furniture that suits your home. If you want to make the home entertaining, you will consider spending on the best smart TVs, a home theater, and other essential electronics. When one wants to make their kitchen more efficient, finding the best appliances is the first step towards achieving this goal.

Reasons To Buy Household Items On Hire Purchase Terms

Hire purchase remains one of the best ways to acquire items that you require for your home. The many benefits that hire purchase financing offers make it a favorable way to obtain quality household items.

One such benefit is the opportunity to purchase quality products. Quality household items do not come cheap. This means that buyers without enough cash usually settle for low-quality products. However, hire purchase ensures that you do not turn to low-quality products. The fact that you do not pay outright for household furniture, electronics, or appliances means that you can choose even expensive assets and pay for them in installments.

Hire purchase is also a better option than even opting for a term loan to buy household items. Term loans have high-interest rates, and this only makes the assets you are buying more expensive. If you choose hire purchase, you enjoy fixed interest rates, thus saving you money in the long run.

Finding a reputable hire purchase dealer

Identifying a reliable hire purchase dealer is important, whenever one is looking to get the best hire purchase deals. You will only enjoy the guarantee or quality services when you work with a trusted dealer. Kenya Credit Traders stands out as a reputable hire purchase company for several reasons.

The number one reason why you can choose KCT for hire purchase deals is accessibility. If you intend to improve your home, you want to find a shop that is close to your home. With over 50 shops countrywide, it is easier to find the items you need for your home when you choose KCT.

One also wants to find a company with industry experience before they sign a hire purchase deal. Kenya credit Traders have been offering hire purchase deals for years, thus choosing them will guarantee that you get the quality services that you deserve.

Homeowners looking for quality household items will always have plenty of choices. Having so many choices can make the task of choosing the right assets to purchase a hard one. However, one must invest time and effort to find the right dealer. Finding a shop offering quality services guarantees that you will enjoy quality products, and here we will check why Kenya Credit Traders excel in hire purchase deals.

Why Hire Purchase Household Items?

There are household items that we require to improve the quality of life in our homes. Investing in kitchen appliances, household furniture, and home entertainment gives your home a new lease of life. However, these items can be expensive, and it might be impossible to acquire all these items through cash purchases. It is thus advisable that one considers hire purchase.

Hire purchase involves paying a down payment for the items you need and clearing the cost in installments. The down payment can be as little as 10% while the installments are also flexible to reflect your needs as a customer.

Why Kenya Credit Traders Excels In Hire Purchase

When determining a hire purchase shop to utilize when buying household items, there are a number of factors worth keeping in mind.

·         Convenience

No buyer wants to incur a hassle when they are shopping for household items. With Kenya Credit Traders, we ensure that the buyer benefits from convenience in different ways. First, you can find all household items that we sell on hire purchase terms online. Visit our website to find out different items available on our shops. After finding the asset you intend to purchase, you can easily contact us and we will direct you to a shop near your location. This is where one picks the items and signs the hire purchase agreement.

·         Transparency

The biggest worry for any customer when signing a hire purchase agreement is hidden charges. Hidden fees will only increase the total cost of the items you are purchasing. By purchasing from KCT, we ensure that you understand the hire purchase contract before signing. We also have plenty of hire purchase blogs here to help you understand how hire purchase works.

·         Affordability

Any customer wants to get the best hire purchase deal without compromising the quality of the products they are purchasing. By choosing KCT, you benefit from low deposit amounts, and also affordable installments spread out to up to 20 months.

Any homeowner in the market for household items needs to consider hire purchase financing. There are numerous benefits a homeowner is set to enjoy by opting for a hire purchase deal. In this post, we will check the benefits of choosing Kenya Credit Traders when purchasing household items.

Why Hire Purchase?

There are items that we need in our day-to-day activities to make our homes more comfortable and functional. Different electronic devices such as smart TVs, DVD players, subwoofers, and home theaters will work to make a home more entertaining. One can watch games, movies, and television programs from the comfort of home. There is a wide variety of kitchen appliances that we also need. These include refrigerators, cookers, blenders, and water dispensers. Dishwashers and washing machines are also equally important in our homes.

While we need all these appliances and devices, they do not come at cheap prices. They will cost several thousands, thus the need to ensure that one makes the correct financial decisions. Hire purchase is the best way to acquire these devices due to the many benefits that one is set to enjoy.

With a hire purchase agreement, one only pays a small fraction of the price of the item they need. This payment is referred to as a down payment. After paying the deposit, one acquires the items and clears the remaining cost in installments.

Benefits Of Choosing Kenya Credit Traders for Hire Purchase

When looking to add household items to your home, it is essential to find a reputable dealer to help you achieve this goal. If you are taking into consideration hire purchase financing, there is a need to find a reliable hire purchase dealer. This is a dealer that can guarantee you quality services.

The number one reason to choose KCT for your hire purchase is reliability. We are a reputable hire purchase shop that has been providing hire purchase services for years. Check our Facebook page for comments from customers who have enjoyed our services in the past.

Another reason to opt for Kenya Credit Traders when buying household items on hire purchase is accessibility. We pride ourselves in having more than 50 shops countrywide. This means it is easier to find products that you need at a shop near your locality.

We have many articles educating you on hire purchase deals on our blog page.

Hire purchase remains one of the best finance options one can utilize when looking for household furniture, electronic gadgets, kitchen appliances, and other high-value items. But what is the impact of your credit score on hire purchase eligibility?

Home and business owners turn to financing when they intend to acquire high-value assets. Some of these assets are costly, making it impossible to pay for them upfront. Even when one can pay for these assets in cash, it might deplete their savings and leave them exposed in the case of an emergency.

Why Choose Hire Purchase?

There are plenty of benefits that will motivate a buyer to choose hire purchase financing for items they plan to purchase. One such benefit is flexible payments. Hire purchase dealers offer flexible repayment schedules depending on your income. Hire purchase also allows you to spread the cost of the assets. The best part about hire purchase is that one can access financing even when they do not have the best credit ratings.

Hire Purchase Vs the Credit Score

One of the reasons why most people settle for hire purchase instead of other financing options is their credit score. In traditional financing, lenders will always check your credit rating before they can approve a loan. People with poor credit ratings usually miss out on loans or they get loans at high interest rates. The purpose of credit rating is to inform the lender of how likely the buyer is to repay the loan.

When you are looking to acquire assets using a hire purchase agreement, some dealers consider your credit rating before signing the agreement. However, most dealers will sign the hire purchase deal even when you do not have the best credit score. This is partly because the items that one is purchasing will be collateral. The debt is secured against the items that one hires from the hire purchase company. However, this doesn’t mean that there is no impact of your credit score on hire purchase eligibility. Buyers with a high credit score will have higher chances of having their hire purchase deal approved.

Check out our blogs on hire purchase agreements here. Also, follow Kenya Credit Traders on Facebook.

Are you considering purchasing items on hire purchase? Is it the right decision? Any consumer looking to acquire assets will want to make the right decisions. Before signing any agreement, it is vital to check how it will benefit you. If you are considering a hire purchase deal, ensure you get a consumer’s perspective on hire purchase deals before making your final decision.

How Consumer Hire Purchase Works

A hire purchase agreement allows a buyer to acquire items they need but can’t purchase outright. The hire purchase dealer requires a down payment to allow the customer to acquire the items. This makes hire purchase ideal for items such as TVs, computers, pieces of furniture, kitchen appliances, and other valuable items. After paying the deposit, the buyer can acquire the assets and even has a right to utilize them.

When one acquires items on hire purchase terms, during the duration of the contract, they will be hiring them. Consequently, one doesn’t become the owner of the items even though they have acquired them and are using them. However, at the end of the hire purchase agreement, the dealer transfers the title to the buyer, thus making them the owner of the assets.

Benefits Of A Hire Purchase Agreement For Consumers

Looking from a consumer’s perspective, hire purchase has numerous benefits.

·         Purchase quality products

Hire purchase agreements allow customers to acquire assets without paying upfront. This means one can purchase even expensive but quality items instead of paying upfront and settling for cheaper assets.

·         Spread the cost

By choosing hire purchase, one has a chance to pay for items in installments. This makes it easier to pay for assets and even leaves you some funds to use on other expenses.

·         Own the assets at the end of the agreement

Hire purchase, unlike leasing, allows you to own the assets at the end of the agreement. Once you pay all the installments, the seller transfers ownership to you.

·         Enjoy low interest rates

Choosing hire purchase over other financing methods ensures you enjoy low-interest rates. These are fixed rates, meaning the cost doesn’t change during the duration you are repaying.

Drawbacks of hire purchase

Hire purchase also has limitations for consumers looking to buy new assets. The major drawback of hire purchase is a higher total cost than in the case of a cash purchase. This is a result of the interest charged on the installments.

Find the latest hire purchase deals here.

Every financing option has benefits and drawbacks, and hire purchase is no exception. Before signing the agreement, it is also vital to check any pitfalls in hire purchase agreements and avoid them.

Hire purchase remains of the best financing options available for home and business owners. Hire purchase financing allows buyers who cannot purchase assets upfront to pay for them in installments.

How Hire Purchase Works

It is vital to learn how hire purchase works before choosing it as your financing option. The first step when looking for assets is determining the items you want to purchase. One then determines if there is a hire purchase dealer selling them or they will need to seek financing from a traditional lender.

Hire purchase dealers such as Kenya Credit Traders sell a lot of items you need for your home or office. The dealer only requires you to deposit 10% or more of the total cost of the items you intend to purchase. Beside the deposit, one also pays installments periodically to pay for the items fully.

Common Pitfalls in Hire Purchase Agreements and How to Avoid Them

There are several mistakes that buyer do when they are looking for a hire purchase deal. Here is a look at these mistakes and how one can avoid them.

The number one mistake most buyers make when signing a hire purchase agreement is ignoring the fine print. Some buyers do not take time to read the hire purchase agreement and end up rushing to sign. This can increase the cost of items due to hidden charges and costs by some hire purchase dealers. Always ensure that you understand the terms and conditions before signing the hire purchase agreement.

Another common pitfall for buyers signing a hire purchase agreement is buying items they do not need. The excitement of getting new assets, electronics, or appliances can lead to one signing a hire purchase agreement. By the them they choose to cancel the contract, they will have paid a deposit, some installments and even an early termination fee.

It is also common for buyers to end up as victims of fraud when they are looking for hire purchase deals. The best way to ensure you do not become a victim is ensuring that you only work with a licensed hire purchase dealer such as Kenya Credit Traders.

How is hire purchase different from traditional financing? Which is the better option when looking to acquire assets for a home or business?

When in the market for a high-value asset, one will be keen to find out financing options available to them. While there are buyers who choose to buy assets in cash, it is not always possible, especially when it comes to high-value items. Some of these items include cars, homes, furniture, electronics, kitchen appliances, and other household items. Hire purchase is one of the finance options available in today’s market.

How Traditional Financing Works

Financing involves looking for a short- or long-term loan from traditional lenders to purchase items that you require. In some cases, when one chooses financing, the assets they acquire act as collateral for the loan. However, this is not always the case as some lenders can provide unsecured loans.

How Hire Purchase Works

Hire purchase is usually a purchase contract between a hire purchase dealer and a buyer looking to acquire assets. In this purchase contract, the buyer pays a deposit as low as 10% of the total cost of the items they intend to purchase. The hire purchase company delivers the items and they have a right to use them. However, one doesn’t automatically become the owner of the assets they are hiring. The dealer remains with the title and only transfers it to the buyer when they pay all the installments.

How hire purchase is different from traditional financing

Hire purchase is a form of finance when looking to acquire assets, but it varies from traditional financing in the following ways.

·         Ownership of the assets

In traditional financing, one gets cash from a loan and uses it to purchase assets. This means that they pay in cash and ownership is transferred to them from the seller. In some cases, the assets act as collateral for the loan and the lender may possess them when you do not repay the loan.

On the other hand, the hire purchase dealer only transfers ownership of the assets when one pays all the installments. They remain the owners of the asset through the contract and can repossess the assets when one fails to honor the contract and make payments.

·         Interest rates

In the case of traditional financing, one acquires a loan from a lender. The lending rates are subject to changes depending on the Central bank’s base rates. This means that the interest rates can increase or decrease at some point. Hire purchase on the other hand comes with a fixed interest rate. This means that the installments do not change with time, and one knows the total value of the asset they are purchasing even before signing the contract.

Kenya Credit Traders is your leading hire purchase dealer in Kenya.

Hire purchase remains one of the best finance options for home and business owners in the market for assets. However, it is vital to analyze a hire purchase deal before choosing it and ensure that you only make the correct decision. Hidden costs and fees in hire purchase deals are easy to overlook, but they can significantly increase the cost of the asset you are purchasing. It is thus essential to always understand the fine print of a hire purchase agreement before signing.

Hire purchase payments

In a hire purchase deal, here are the common payments that a buyer pays to the dealer.

1.      Deposit

Before you acquire an asset on hire purchase, the dealer requires a down payment. One can choose the amount to pay as a deposit, but dealers such as Kenya Credit Traders accept as low as 10% of the total cost as a down payment.

2.      Interest rates

Cost of items on hire purchase terms is usually higher than a cash purchase. This is usually a result of the interest rate charged. This is the cost of borrowing money to buy the items that you are hiring. The interest rates are usually fixed rates in the case of hire purchase deals.

3.      Repayments /Installments

When you acquire goods on hire purchase terms, you will make regular or periodic payments to the seller over a set period. This helps pay for the total cost of the assets and ensures the transfer of ownership.

Other Charges and Fees in Hire Purchase Deals

Besides the common payments, one may also incur other charges in a hire purchase agreement. Here are some hidden costs and fees in hire purchase deals that one ought to check before signing the deal.

1.      Late payment fees

Late payment fees are the most common penalty fees in a hire purchase agreement. It is charged in a case where one fails to make the scheduled payments on time.

2.      Missed payment fees

Almost similar to a late payment fee, the missed payment fee is charged when the buyer doesn’t make a payment to the dealer.

3.      Administration fees

There are hire purchase dealers that charge you an administration fee for different services such as setting up the agreement or making changes to the hire purchase contract.

4.      Early termination fees

If one wants out of the hire purchase deal, they might need to pay an early termination fee. This happens when a customer returns the items to the dealer.

5.      Early settlement fees

This is a fee that a borrower incurs when they choose to pay for the items earlier than the specifications of the hire purchase agreement. The fee varies from one dealer to the other.

 

Find out more about hire purchases on our blog page.

Do you intend to acquire household items on hire purchase terms? As is the case with any financial decision, before opting for a hire purchase agreement, one should learn the risks and drawbacks of a hire purchase deal. It is essential to understand how hire purchase works before signing the agreement.

How does hire purchase work?

A hire purchase contract allows homeowners to hire assets that they require and end up as the owners. When one identifies the assets they require for their home, a hire purchase dealer will require them to pay a down payment. This is a fraction of the total cost of the assets and can be as little as 10% of the total value.

The major reason why most homeowners opt for hire purchase when looking to acquire household items is the opportunity to spread the cost. After paying a deposit, one pays the remaining cost in the form of daily, weekly, or monthly installments. However, there are some risks of using a hire purchase agreement.

Disadvantages Of Hire Purchase

·         Higher cost in comparison to purchasing upfront

Spreading the cost of the items you are purchasing is one of the biggest reasons why people choose hire purchase. However, installments that a buyer pays to the dealer come with an interest rate. While the interest rates for hire purchase deals are usually low, they will still make the price of the assets to be higher than what a customer pays when purchasing in cash.

·         You do not automatically own the goods after acquiring them

When one chooses hire purchase to obtain assets, they acquire them at only a fraction of the cost. After acquiring the items, one has the right to use them. However, one doesn’t assume ownership immediately. The buyer hires the assets from the hire purchase dealer. This means that you cannot resell the assets without the authorization of the hire purchase dealer. However, when you pay the last installment, you become the owner of the assets.

·         Commitment to fixed payments

When you sign a hire purchase deal, you will be paying daily, weekly, or monthly payments to clear the cost. The payments are fixed throughout the hire purchase agreement. In any case where your financial situation changes, you may strain to meet the obligations. Lack of payment will see the dealer repossess the assets.

Learn more about hire purchase agreements here. Follow Kenya credit Traders on Facebook for the best deals.

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