On the lookout for budget-friendly options and ideas in modern times? There is no doubt that we live in hard times. The inflation and high taxes mean that the prices of assets and items have risen. It is thus paramount for homeowners to find new ideas that will help them overcome the tough times. If you are looking to find new furniture, appliances, electronics, and other items for your home, here’s why you need to consider hire purchase plans.
What Does Hire Purchase Plans Involve?
A hire purchase plan is a purchase contract between a seller and a buyer. It involves a buyer acquiring items without paying upfront for the items. The buyer selects the items they intend to purchase and pays a down payment to acquire them. The down payment is a small fraction of the total cost of the items. In Kenya, the leading hire purchase dealers Kenya Credit Traders, require as low as 15% of the total cost for items such as furniture, kitchen appliances, electronics, and others. The requirement to pay only 15% to acquire items aims at improving affordability.
Is Hire Purchase Budget-Friendly?
Hire purchase is quickly becoming a popular financing option for homeowners looking for assets. Buyers looking for household items find hire purchase favorable due to several reasons.
One of the reasons why hire purchase is popular is the ability to spread the cost. Hire purchase is different from cash purchases. In cash purchases, the buyer pays for the total cost of items to acquire them. In the case of a hire purchase, one only pays a fraction to take home the items. After the down payment, the remaining balance is spread out into periodic payments.
The key reason to choose hire purchase as a budget-friendly living with Kenya Credit Traders option is that the installments are constant. What one pays as the first installment remains the same till the last one. Changes in interest rates and inflation will not make your installments increase. With fixed payments, the buyer always knows what is expected from them. The installments are flexible and are set to suit the needs of the buyer. It is thus easier for the buyer to budget and make timely payments when they choose a hire purchase plan.
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