Hire purchase is gaining popularity among Kenyans looking to purchase household electronics. Previously, customers would be required to pay for items upfront to acquire them. This means that one has to work with their budget, even if it means settling for low-quality items. However, with the emergence of lipa pole pole electronics, customers now can afford a wide variety of electronics.

What Is Electronics Hire Purchase?

Electronics hire purchase deals involve paying a fraction of the total cost as a deposit and then spreading the balance into several months. If you are looking to acquire an AIWA 55″ smart TV or an Android TV, you will only need to pay 15% of the cost to KCT to take it home. The customer has up to 24 months to clear the balance.

Understanding The Cost Benefits of Electronics Hire Purchase

Hire purchase has benefits as well as limitations. One of the downsides of a hire purchase deal is that the total cost is higher than the cash price. The difference is brought about by the interest charged on the installments. While trying to understand the cost-benefit of electronics hire purchase, we will compare this limitation and other financial benefits of choosing a hire purchase deal.

While it is true that a buyer ends up paying more for the items than they would in a cash purchase, hire purchase allows them to spread the cost. The opportunity to spread the cost has several benefits. One such benefit is affordability. When you do not have to pay upfront for electronics, even the most expensive electronics become affordable. You do not have to settle for low-quality electronics.  Hire purchase allows you to acquire quality electronics and pay for them in installments.

Another reason why hire purchase remains a better choice is that it gives you control over your finances. If you only pay for items in cash, you are likely to have instances when you do not have savings. This will mean that you cannot even cater for an emergency. With hire purchase, you only pay a fraction of the cost every month, and you are left with cash to spend on other expenses.

Hire purchase is also a better option than leasing. Renting electronics means that you return them to the owner at the end of the agreement. However, with a hire purchase, you own the items upon paying the last installment.

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