Hire purchase is one of the best financing options when looking for household items. This financing plan allows a consumer to use the assets while paying for them. It is thus the ideal option for a homeowner without the cash to purchase an item upfront. While hire purchase can seem an easy way to acquire household items, one must understand the hire purchase agreement before signing. It pays to consider these KCT insights and tips for consumers as they can help you find the best deal.

KCT Insights and Tips For Consumers

Regardless of the item one is looking to add to their home, the primary aim is always to get the best deal. The best deal is not one that comes cheap, but it is the one that gives you value for your money. With hire purchase, it is not about the total cost, but the fine print in the hire purchase agreement. Here are some tips worth considering.

• Learn how hire purchase works. Before opting for a hire purchase deal, you must invest effort and time in learning how a hire purchase agreement works. Compare and contract hire purchase deals with a cash purchase and other payment plans.
• Look for a hire purchase agreement from different dealers. One of the ways to ensure you get the best hire purchase deal is by comparing different hire purchase dealers. Look at the terms of the agreements, discuss the charges, and look out for hidden charges before settling for a hire purchase agreement. The reputation of the hire purchase company is also an essential consideration before settling for them.
• Check the interest rates and the total cost of the items. The total cost of the items is always higher in a high purchase agreement than in the case of a cash purchase. Low monthly payments mean a longer duration to complete the hire purchase agreement, thus a higher total cost. If you pay a high amount as a down payment, you will complete the payments in a shorter duration, and thus lower the total cost.
• Check fees and charges before signing the agreement. Before choosing a hire purchase contract, always ask the retailer to disclose all the fees and charges throughout the repayment period. Check for penalties as well in the case of late payments. This helps you get an idea about the total cost of the assets.

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Improving your home is a process. Home improvement aims at making your living space more functional and aesthetically appealing. This can be achieved through a home improvement project. However, in some cases, all that one needs is to purchase household essentials. Finding new furniture, acquiring the latest technology appliances, and investing in quality electronic gadgets, are just some of the ways to make your living space better.

Acquiring Household Items Through Hire Purchase

Hire purchase agreements are becoming a popular way to invest in household items. In the past, buyers only considered cash payments to buy items they needed for their home. This is no longer the case due to the emergence of hire purchases as a better alternative to cash purchases.

Leading credit traders such as Kenya Credit Traders are revolutionizing how buyers acquire items by providing better hire purchase terms. With hire purchase deals, a buyer doesn’t need to pay upfront for furniture, kitchen appliances, or any other household items. A buyer needs as little as 15%, which is the down payment for the items they intend to acquire. Immediately after paying the deposit, one acquires the items for their use. The total cost of the items is met by paying the balance in installments.

The Convenience Of a 15% Deposit Scheme

The biggest benefit of a hire purchase agreement is the convenience that one enjoys. There are numerous ways in which a hire purchase will prove a better deal for a homeowner. The number one benefit of choosing a hire purchase arrangement is the chance to spread the cost. The cost of the items is distributed over several months. You will pay for the items while you still use them. The best part about a hire purchase deal is that you end up as the owner of the items at the end of the agreement. After making the last payment, the dealer transfers ownership to the hirer.

Benefits of Choosing Kenya Credit Traders as a Hire Purchase Partner

To enjoy the best hire purchase deals, you need to choose a reliable hire purchase company. Kenya Credit Traders is one of the best lipa mdogo mdogo dealers. One of the benefits of choosing Kenya Credit traders is that they are licensed. Apart from a license, KCT has branches countrywide, thus enhancing access to different household items that you need for your home.

Homeowners in the market for essential household items want to find out their options. Every buyer wants to find a deal that is convenient to them. The best deal is not the one that saves you a lot of money. A good deal should help you purchase quality assets at the right price. This ensures that one enjoys value for their money. Cash purchases do not always favor middle-income earners. The tough economic times characterized by high taxes, low income, and high cost of living means that most individuals make little or no savings.

15% Deposit Schemes with Kenya Credit Traders

One of the best alternatives to cash purchases is acquiring assets on hire purchase terms. A hire purchase agreement involves acquiring assets by only paying a down payment. This is a fraction of the cost of the items. Kenya Credit Traders require as little as 15% of the total cost to deliver household items to the buyer. The balance is spread out in the form of periodic payments. Hire purchase is also referred to as lipa pole pole or lipa mdogo mdogo in Kenya.

Benefits of 15% Deposit Schemes with Kenya Credit Traders

There are plenty of benefits that come with hire purchase schemes to the consumers. Here are some of the major benefits.

·         Convenience

One of the biggest reasons to embrace hire purchase agreements is convenience. Hire purchases make it easier to acquire expensive assets without waiting until one has saved enough cash for the assets. With a 15% down payment, one acquires the assets and is even allowed to use them. Items that would be unaffordable to buyers in the case of cash purchases become affordable and accessible through high purchase deals.

·         Spread the cost

Hire purchase schemes allow the buyer to spread the cost over a period. After paying the down payment, the rest of the payment is divided into installments. The installments are affordable and flexible, depending on your financial needs and capability.

·         Own the assets at the end of the agreement

Unlike leasing, a hire purchase agreement allows you to become the owner of the assets at the end of the contract. Once all the installments are paid, the title is transferred to the hirer by the dealer.

·         Return the assets if you no longer need them

With some hire purchase deals, the buyer has an opportunity to end the agreement if they no longer require them. This makes it convenient for the homeowners as they do not end up stuck with items they do not need. You will also avoid making expensive payments for such items, thus saving you some money.

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Financial inclusion is all about ensuring that individuals and businesses can access affordable and responsible financial services and products. Not every individual in modern times earns enough to pay for their daily expenses and even make savings. Persons looking to acquire assets might find it difficult to achieve this goal by only choosing to save. However, with hire purchase schemes, it is possible to achieve this goal. Here is how Kenya Credit Traders is bridging gaps in 2024 by ensuring that consumers can access assets that would otherwise be out of their reach.

How 15% deposit schemes work

Homeowners looking for essential household items need to consider hire purchase deals. Hire purchase schemes are designed to favor buyers that cannot manage to pay for assets upfront. With a hire purchase agreement, a buyer only needs to pay as low as 15% of the cost of the assets to acquire them. This is a down payment for the assets, after which the buyer acquires the household goods and utilizes them. To meet the total cost of the assets, the buyer pays in the form of installments.

How Kenya Credit Traders bridges gaps with hire purchase schemes

It is almost impossible for a majority of Kenyans in modern times to purchase items outright due to the current economic environment. Low income, high taxes, and high cost of living make it hard for a majority of the middle class to make savings. This means that one might need several months or years before saving enough to purchase an asset that they need. However, you do not need to wait for such extended durations to utilize items that you need if you opt to hire a purchase.

With hire purchase schemes, you only need to save up to 15% of the cost of the household items you require. The remaining cost is spread out in the form of monthly installments. This makes it possible for middle-income earners to purchase high-cost assets since they have the opportunity to distribute the cost. The 15% deposit schemes enhance inclusivity by empowering homeowners looking to invest in quality household items. One doesn’t have to settle for low-quality assets if one chooses a hire purchase deal.

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Home is where magic happens. It is where everyone enjoys comfort and unwinds from all kinds of hassles. The space keeps evolving, and a homeowner always wants to improve their home at any available opportunity. Improving your home space mostly involves investing in quality home essentials. There is a wide range of home essentials that a homeowner needs to consider.

Ideas On Home Essentials to Invest In

We need quality furniture to make our living room more functional and aesthetically appealing. A sofa or a modern couch will provide you with the perfect spot to unwind after a busy day at the workplace. You can relax on it as you listen to cool music, read a book, or just meditate. You will also need to invest in a dining set for your family. This not only provides the space to enjoy your meals, but it also offers the family a chance to come together. There are plenty of other furniture options available at Kenya Credit Traders that are worth considering.

Apart from investing in furniture, one also requires appliances to enhance their home. We need dishwashers, microwaves, and cookers as part of home essentials. Adding a refrigerator to your home also works to ensure that you can enjoy a cold drink at any given time of the day. It also helps keep your farm produce fresh.

Electronic gadgets have also become part of the must-have items in modern times. We no longer need to visit cinema halls to watch the latest movies or watch your favorite team playing. You can bring the cinematic experience to your home by investing in a smart TV and a good home theater.

Hire Purchase Schemes and The Role of Kenya Credit Traders

There is a shift from the traditional approach when one is looking to purchase household items. In the past, one would need cash to acquire these items. However, modern trends include finding items online. You can select essential assets for your home from the comfort of your home. Another shift from the traditional way of acquiring home essentials is utilizing hire purchase schemes.

Hire purchase dealers such as Kenya Credit Traders make it possible for homeowners to find furniture, electronics, and appliances without paying upfront. Hire purchase schemes, known as lipa pole pole, or lipa mdogo mdogo, involve acquiring asses that you need and paying their price later in the form of installments. This makes it possible for homeowners to spend on items that would otherwise prove expensive and out of reach if they were to pay in cash.

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Homeowners looking to acquire household items in modern times will always have options. In the past, cash purchases were the only consideration for homeowners. However, the rise of credit traders in Kenya has changed the household items market by providing homeowners with another option.

How hire purchase for household items works

Hire purchase offers a favorable way to acquire and pay for household items in modern times. The first step involves the homeowner determining the items they need for their home. Plenty of assets are available on hire purchase terms, including furniture, electronics, appliances, and gadgets. After identifying the items, one intends to purchase, the second step is finding a hire purchase dealer selling the items that you need.

To acquire household items, the homeowner is required to sign a hire purchase agreement. This is a sales agreement between the buyer and the credit trader. It highlights the rights, duties, and responsibilities of the two parties involved. The agreement also lasts until the buyer makes all the necessary payments and the title of the items is transferred to the homeowner.

The Rise of Credit Traders

There is an increase in the number of credit traders in Kenya providing items on hire purchase terms. These include mobile phone dealers, boda boda dealers, solar systems providers, and household items dealers. The rise of credit traders coincides with the demand for various items in the Kenyan market. More people continue to embrace credit trading, especially in modern times when the economic situation doesn’t promote savings.

Credit Traders allow homeowners to acquire items without paying for items in cash. They only pay a deposit, as low as 15% of the total cost of the items. After paying the deposit, one acquires the items and has a right to use them. The buyer clears the balance in installments.

The rise of credit traders has made the process of acquiring household items easier for homeowners. One no longer needs to save money to acquire items in cash. With credit traders in Kenya, such as KCT, you can acquire household items at only a fraction of the cost. The best part about credit traders is that you end up as the owner of the items.

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Every customer in the market for any given product wants a reliable dealer that delivers quality products and services. Finding a reputable trader is especially important in the case of a hire purchase deal. A hire purchase agreement will take months or even years, and this means you will need a dealer that listens to your needs. Here’s how Kenya Credit Traders delivers to their customers.

·        We ensure you understand how hire purchase works

Any financial decision that one makes affects them in the short and long term. While hire purchase offers you a convenient route to acquire items that your home needs, it has benefits and shortcomings too. Most customers avoid hire purchase contracts fearing hidden charges and penalties that come as a result of not understanding how these agreements work. At Kenya Credit Traders, we ensure that our customers understand the hire purchase jargon before committing. You can also learn a lot about hire purchase deals on our blog.

·        We make shopping convenient

At Kenya Credit Traders, we make shopping more convenient for our customers by helping them determine products available at our shops online. Visit our website and view different items available on hire purchase terms.

·        We only deliver quality products

It is not only the quality of the services that matters but also the quality of the products a customer acquires when purchasing. The market is flooded with counterfeit products and when one is not keen, they will end up purchasing such products. Most customers looking for cheaper deals end up in this trap. In the end, one spends much more money replacing and repairing such assets. At KCT, we assure our clients about the quality of our products. You only get quality products that will serve you for years.

·        We value your feedback

Another technique how Kenya Credit Traders delivers on their promises is listening to feedback from customers. We value ratings, testimonials, and reviews that clients provide when they shop with us. This helps us improve the quality of services that we offer. Clients can provide their views physically at our branches countrywide. One can also drop their comments, and complaints through our Facebook page, Kenya Credit Traders.

Hire purchase agreements are a popular way to acquire assets for a home or business in modern times. The many benefits that hire purchase offers lure shoppers to consider it over other financing options. However, while some shoppers enjoy success while shopping using hire purchase, others end up with regrets. Keep reading as we check some of these real-life stories.

Successes associated with hire purchase

Many shoppers who choose hire purchase agreements when purchasing items for their home or business have highlighted a variety of benefits. Here are some of the advantages some of the shoppers noted.

Hire purchase makes the process of purchasing assets easier by allowing the buyer to split and spread the cost. A buyer only pays some cash as the down payment for the items they are purchasing.

Abdul Rashid was looking for furniture for their new home. After spending much money in purchasing the home, he did not have enough cash to purchase furniture. However, through a high purchase agreement, he was able to acquire quality furniture and pay in installments. He only used a fraction of his monthly salary to pay for the furniture, all while using the furniture pieces in their home.

Another benefit of hire purchase is the interest rates a buyer enjoys. If one opts for other financing options such as a term loan, they incur high interest due to high interest rates. Here is a case example from a buyer.

According to Korir, a buyer from Kericho, hire purchase saves a lot of money in comparison to other financing methods. Previously, he turned to short-term loans from online lenders when purchasing assets. Term loans come with high-interest rates. The rates can also change depending on base rates from the Central Bank. However, with the hire purchase, he enjoys fixed interest rates. The installments remain the same all the time and this makes it easier to budget for the payments.

Regrets from hire purchase agreements

Hire purchase, like any other financing method also has some downsides. One of the major downsides quoted by most buyers is a higher price in comparison to cash purchases.

Mrs Kamau, for instance, paid almost twice the cash price of a refrigerator when she opted for a hire purchase agreement. However, this was a result of a lengthy hire purchase agreement. Buyers opting for shorter hire purchase contracts enjoy low-interest rates.

Learn more about hire purchase on our blog. Visit Kenya Credit Traders‘ Facebook page for the latest hire purchase deals.

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.