When in the market to find assets on hire purchase, it is crucial to invest time and effort learning about hire purchase agreements. It is important to understand differences between hire purchase and cash purchase. This helps you prepare for the deal financially and ensure you make the correct decision.

Differences between hire purchase and cash purchase

There are several differences between buying on hire purchase and purchasing an asset outright. One such difference is ownership of the items. In cash purchase, you acquire the products immediately after the payment and also become the owner. In the case of hire purchase, you acquire the asset after making the down payment. However, you only become the owner after paying the last installment.

Another difference between cash purchase and a hire purchase is the total cost of the asset. The price of the asset is lower in the case of cash purchase. The differences between the cost are caused by the interest rate charged on the installments.

Hire purchase calculations

Hire purchase cost

This is the total cost of a given item when one buys it using a hire purchase agreement.

Total amount paid = Deposit + installments

Example:

A buyer purchased a TV on hire purchase terms. After making a down payment of Ksh 5,000 he paid 12 monthly installments of Ksh 2000. What was the total cost of the TV?

Total cost = 5,000 + (12 x 2,000)

Cost= 5000 + 24,000

= Ksh 29,000

Interest

This is the difference between the cash price and hire purchase cost.

Interest = total amount paid – cash price

Example:

A buyer purchased furniture for using hire purchase terms. After making an initial deposit of Ksh 10000, he made Ksh 4000 monthly installments for 10 months. If the original price of the furniture is Ksh 45000, what was the interest charged?

Interest = Hire purchase cost- cash price

= (10000 + (10 X 4000)) -42000

= (10000+ 40000) – 42000

= 50000 – 45000

= Ksh 5000

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Credit is without a doubt a vital financial solution in acquiring goods for individual as well as business use. At some point, we all need credit products for our day to day lives. When we need items, but we do not have all the money to buy outright, we choose to find a credit solution. One of the best agreement common in modern times is hire purchase. It works for clients looking to purchase items that require a large amount of cash to purchase.

How Hire Purchase Works

The first step in hire purchase requires the buyer identifying the assets that they require. Afterwards, they identify dealers that accept hire purchase as a method of payment. Kenya Credit Traders is the leading hire purchase company for a variety of assets you require for your home or business.

When you identify the dealer, the next step involves acquiring the asset. To obtain an asset, the buyer needs to make a down payment. After making this down payment, the buyer obtains the asset for their use. However, they do not become the owner of the assets outright.

To clear the balance, the buyer and the dealer negotiate the period of repayment. The buyer makes payment in the form of installments. This can be daily, weekly or monthly installments. One becomes the owner of the items after they paying all the installments. In a case where one defaults payment, the seller has the right to repossess the assets and the buyer losses any payments they have made.

Types of Hire Purchase Agreements

Hire purchase agreements are classified depending on the intended use of the assets. An agreement is classified as either a consumer hire purchase or industrial hire purchase.

·         Consumer hire purchase

This is a type of hire purchase where the buyer rents goods for personal use. The buyer in this case uses the assets for their home. It also involves individual buyers and not a business or company. The assets are not used for business transactions.

·         Industrial hire purchase

This is a transaction between two companies. The financing or lending institution leases the assets to another business for industrial or business use. The buyer has an option to purchase the asset later. Industrial hire purchase comes with fixed monthly payment, allowance for early settlement, and in some cases, a variable interest rate on the monthly installments.

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A television is one asset that is beneficial to any homeowner or a business owner. Almost everyone has invested in one, or at least they are planning to. When in the market for one, you want to make only the right decisions. It is essential to find the right model, brand, size, and at the right price.

Payment Options for TVs In Kenya

Most people looking for TVs only consider purchasing them in cash. This means that one has to pay the cash amount in full to acquire the TV for their home or business. While this might be convenient for small TVs, it is not the same case for larger TVs. Smart and digital TVs of 32’’ screen size and above will cost you at least KSH 20,000. Larger sizes cost more than Ksh 100,000. This might take you some time to save considering that you have other needs. Even when you have the cash, you might have to overlook other expenses to acquire one. This can cause an imbalance in your finances.

Hire purchase, or lipa pole pole is one of the best payment plans you can utilize in modern times. You will only need a fraction of the total cost of the TV to acquire it. Leading dealers in Kenya, such as Kenya Credit Traders, require you to deposit around 10% of the total cost. You will spread the cost over several months by paying monthly installments. On paying the last installment, you will become the owner of the TV.

Benefits Of Hire Purchase TVs In Kenya

One of the advantages of purchasing a TV through hire purchase is that you will acquire the TV immediately. You do not have to wait until you save all the cash to acquire the TV. After paying the deposit, you acquire the TV.

Another reason to consider hire purchase TVs is the ability to spread the cost. Payment is made in installments, allowing you to have better control over your finances.

It is also advisable to consider hire purchase TVs instead of taking a term loan to purchase the TV in cash. Hire purchase agreements come with fixed interest rates, unlike in the case of loans where interest rates are subject to regulation from the Central Bank of Kenya.

Find TVs available on hire purchase TV on the Kenya Credit Traders website. Also, get the best offers by following Kenya Credit Traders on Facebook.

When purchasing assets, one has different payment plan options. There are assets that one can easily purchase in cash. However, high-value items may prove unaffordable if you are purchasing in cash. One has to explore other payment plans to acquire such assets.

Assets such as cars, a home, electronics, and machinery are considered high-value items. They will cost tens or hundreds of thousands, and it might be impossible to purchase them with cash. To acquire such items, one might consider utilizing a loan from lending institutions such as banks and SACCOs. However, there is a better option in the form of a hire purchase agreement. However, before signing a hire purchase agreement, it is essential to invest effort and time in understanding hire purchase.

Hire purchase vs cash payments

With cash payments, one needs to pay for the goods they intend to purchase in full before acquiring them. One immediately becomes the owner after a cash purchase.

In the case of a hire purchase, you do not need to have all the cash. The best hire purchase dealers, such as Kenya Credit Traders, require you to deposit as low as 10% of the total cost of the product. After paying the deposit and signing the hire purchase agreement, you acquire the products. The balance is cleared in several installments, which can be daily, weekly, or monthly depending on the agreement. After paying the last installment, one becomes the owner. Hire purchase is considered a convenient payment plan since it allows you to spread the cost.

Hire purchase vs loans

The common factor between a hire purchase and using a loan to purchase assets is interest. When you take a loan, there will be interest charged on the amount obtained. In the case of bank loans, the interest rates are regulated by the Central Bank of Kenya, and they are subject to change.

An interest rate is also changed in the case of a hire purchase. This makes the hire purchase price higher than the cash price. However, in this case, the interest rates are fixed and are not subject to regulations from the Central Bank of Kenya.

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When in the market to purchase high-value assets such as a home, car, furniture, and appliances, hire purchase is considered one of the best methods of payment. In Kenya, hire purchase is quickly becoming the preferred payment method. Most people purchase motorcycles, cars, TVs, refrigerators, and even smartphones using lipa mdogo mdogo or lipa pole pole payment plans. All these purchases are guided by the hire purchase act in Kenya.

What is a hire purchase act?

This is an Act of Parliament that we designed to offer provisions that regulate hire purchase agreements as well as licensing of hire purchase concerns. The act was first assented to in Kenya’s parliament in June 1968. However, its date of commencement was 2^nd November 1970. There have been numerous amendments to this Act, the most recent one being in 2017.

Notes from the hire purchase act

A hire purchase agreement is defined by common law as a contract for the delivery of goods where the hirer has the option to purchase the goods. It is a hybrid of a contract of sale and simple bailment. There are no formal requirements for a hire purchase agreement. An oral agreement for the sale of goods is valid and binding. The law requires certainty and precision in the terms of the hire purchase agreement ad the parties to the agreement ought to reach a consensus ad idem.

The hire purchase act also aims at protecting the hirer from fraudulent dealers. In a case where the hirer signs a contract that is mispresented to him, they are allowed to plead non-est factum and escape liability. The contract will also not hold if the condition of the goods changes between the time of the offer and acceptance.

When a hire purchase agreement doesn’t involve the intervention of a finance company, the legally binding agreement comes into existence when the dealer delivers the goods after posting a letter of acceptance.

Contents of the hire purchase agreement

• Definitions or descriptions of the parties
• A description of the goods
• The cash and hire purchase prices
• Number of payable installments
• The amount and when to make payments
• Signature from the hirer and by or on behalf of the owner
• Rights of the hirer

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There is no doubt that a TV set transforms your home or business space. In the business space, a TV can be utilized in numerous ways. There are business owners that use TVs for illustrations instead of investing in projectors which are costly. Some businesses have TVs to keep their customers entertained as they await services. It is also a good asset to stay updated with the latest happenings in the country and around the globe. At home, a TV helps you unwind after a busy day. It helps you catch up with your favorite TV programs.

TCL Digital and Smart TVs

TCL TVs are quickly becoming a top pick for most customers in the market for televisions. One of the reasons behind the rise of TCL TVs is that they offer value for your money. They are among the most affordable TVs in the country. The best part is that their affordable price doesn’t translate into low quality. When you purchase TCL TVs, you will enjoy scenes with striking highlights, vibrant colors, a range of colors, and enhanced contrast.

TCL TVs come in two main types. You can spend on a digital TV or a smart TCL TV. Digital TVs have an in-built decoder, and this means you do not have to spend on another decoder to watch local TV stations. Smart TCL TVs are an even better deal. They allow you to connect to the internet, thus allowing you to stream content on YouTube, Netflix, and other streaming services. They also come with different apps to enhance the entertainment experience.

Incredible Lipa Pole Pole Products

In Kenya, hire purchase is becoming a common way to acquire assets. Regardless of the TCL TV you want to purchase, it is possible to acquire it for only a fraction of the total cost. Leading dealers such as Kenya Credit Traders have incredible lipa pole pole products. You will only need as low as 10% of the total cost to acquire the TV. One clears the balance in the form of monthly installments. This helps you spread the cost. After making the last payment, you become the owner of the asset.

Find the best lipa pole pole deals on our online store. Follow Kenya Credit Traders on Facebook.

When in the market to purchase a smart TV for your living room, you will have numerous options. There are numerous brands available in the market. Various brands also have a wide range of models, sizes, and features. It is thus desirable that you invest time and effort assessing different choices to make sure you only find the ideal smart TV for your home.

TCL Smart TVs

One of the brands that stand out in modern times is TCL TVs. There are plenty of reasons to settle for a TCL smart TV. One such reason is the fact that they are affordable. TCL smart TVs are reasonably priced compared to other brands such as Samsung, Sony, and LG. A TCL smart TV comes at a lower price when compared to other TVs the same size.

While TCL TVs, are available at affordable prices, they do not compromise the quality of viewing. Modern TCL TVs come with smart features, operating systems, voice commands, and even gaming features. The TVs are also available in different sizes. This means that it is easier to find one that suits your budget and needs.

Lipa Pole Pole Trends for TCL smart TVs

Whenever one is looking to purchase high-value items such as a smart TV, they will be eager to learn the payment options available to them. While TCL brand is one of the most competitive TV brands, they will still cost a few tens of thousands, especially TVs large in size. The cost usually depends on the features of the TV and the screen size.

The best part is that one can still have a TCL smart TV even when they do not have all the cash. In the Kenyan TV market, leading dealers such as Kenya Credit Traders have incredible lipa pole pole deals that one can utilize.

Lipa pole pole Trends utilize the hire purchase rules. You will only need to provide a fraction of the total cost to acquire the TV. The balance is spread out over several months. This is a favorable way to own your dream TCL TV and transform your living space.

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Whenever one is looking to purchase high-value items for their home or business, they will be eager to find h best financing options available. Hire purchase, usually referred to as lipa mdogo mdogo or lipa pole pole in Kenya, is quickly becoming the best payment plan.

Hisense TVs

If you are in the market for a quality TV to add to your living room or business space, Hisense TV is one of the best choices you can take. This is one brand that has seen tremendous growth in the Kenyan market.

One of the reasons behind the increase in customers choosing Hisense TV over other brands is affordability. Hisense TV will always give you value for your money. They are not overpriced, and they do not compromise on quality.

Another benefit of choosing Hisense TVs is that you will have a variety of models and sizes to choose from. Whether you need a small TV for your bedroom or a big TV for your business space, you will never lack options. There are plenty of digital and smart TV models to choose from.

Reasons to hire purchase Hisense TV

When you choose to spend on a Hisense TV, a hire purchase is a favorable payment plan. There are leading dealers such as Kenya Credit Traders that help you acquire your dream TV using this payment method.

By settling to hire purchase a Hisense TV, one spreads the cost of the TV. You will need to pay a deposit, which can be as low as 10% of the total cost of the television. The balance is cleared in the form of periodic payments. If you do not have money to buy the TV outright, this is a favorable way to acquire it.

The best approach to hire purchase Hisense TV

People have different personalities. This definitely shapes how we act, how we think, and how we handle even financial transactions. However, regardless of your personality, here’s the best approach to hire purchase Hisense TV.

The first step involves getting on the internet to analyze different models. Invest some effort and time comparing different Hisense models to find the most suitable ones.

When comparing TV models, it is also desirable to learn about companies offering lipa pole pole deals. Always focus on finding a reputable dealer.

When you settle for a given hire purchase company, analyze the hire purchase agreement. There are several considerations to keep in mind before signing the agreement. These include the interest rates, the length of the agreement, monthly installments, fines and penalties, and other terms and conditions.

Learn more about hire purchase on our blog. Visit our Facebook page, Kenya Credit Traders for more educative content and amazing hire purchase deals.

Hisense TVs are popular with many buyers in modern times. Hisense TVs are considered more affordable when compared with other TV brands. If you are looking for a quality TV at an affordable price, Hisense TVs are your best option.

Reasons to consider purchasing Hisense TVs

The Hisense TVs started as a budget option for buyers. However, in modern times, they have evolved with the many updates. This means that they are competing with the leading TV brands.

• Value for money. One of the best parts of Hisense TVs is that they offer value for your money. A Hisense TV with quality features will not need you to break the bank to purchase.
• A variety to choose from. Hisense TVs come with a variety of features for you to choose from. In recent times, there are Hisense TVs that come with gaming features to give you the ultimate gaming experience.

Why Hire purchase Hisense TV

When in the market to purchase a Hisense, a hire purchase is one of the payment methods you can utilize. Leading traders such as Kenya Credit Traders require you to pay as low as 10% of the TV’s cost. You can clear the balance in monthly installments. This means that you do not have to interrupt your cash flow or wait until you save enough to purchase your dream Hisense TV.

Overcoming your fear of hire purchase Hisense TV

Fear is one of the common emotions that dominate us before we make any purchase. It is not a bad emotion, after all, considering that it helps keep us safe, and ensures we are more cautious before making any decision.

The fear of being scammed is one of the most common reasons people avoid hire purchase for TVs. Here’s how to overcome the fear.

• Invest effort and time in looking for the ideal TV to purchase. It is easy to compare different TV models in modern times. There are plenty of Hisense TV reviews available online. Taking your time to compare different Hisense TV models ensures that you settle for a model that suits your needs.
• Read and understand how hire purchase agreements work. Most people fear lipa mdogo mdogo deals because they don’t understand how it works. Our Blog has plenty of articles to help you learn how hire purchase works. Reading them will be a key step to help you overcome the fear of hire purchase Hisense TV purchase.
• Focus on finding a reliable dealer. After you find your ideal model, it’s time to find the best dealer. Working with a reliable dealer helps you overcome all your fears. Read reviews and testimonials from customers who purchased from a given dealer to determine if they are trustworthy.

Follow Kenya Credit Traders on Facebook for the best deals on Hisense TVs.

Hire purchase, or lipa mdogo mdogo, is quickly becoming a favorite payment option for homeowners or business owners looking to acquire assets. The many benefits that come with a hire purchase are part of the reasons to consider this payment method.

Adding a smart TV to your home or business space

Owning a smart or digital TV is one of the best decisions that you can make. With a TV, one is able to learn about happenings around the globe. Smart TVs offer a whole entertainment experience. You are not only limited to TV programs. You can stream all types of shows using the internet when you invest in one.

If you are looking to add a TV to your living or bedroom, you will have options. There are different brands, models, and sizes to choose from. However, LG TVs have proved over time to be the most reliable option.

Reasons to consider LG TVs

Whether you are in the market for a smart or digital TV, the LG brand stands out as one of the best options in the market. Here are some benefits of LG TVs.

• TVs come in a variety of prices. Settling for low-cost TVs at times means that you will compromise the quality. On the other hand, one doesn’t want to overpay when purchasing TVs. LG TVs offer value for your money.
• Quality and stylish design. One wants to spend on a TV to enhance the ambiance of their living room. LG TVs are stylish and help you achieve your goal.

Hire purchase LG TV advice

When you choose to acquire an LG TV from leading hire purchase dealers such as Kenya Credit Traders, here are some factors to keep in mind.

1.      Take your time researching and find the best deal

Before spending on any asset, it is advisable to spend some time and effort researching. This will not only save you money, but also saves you a lot of hassle in the future. Ensure that you are getting the best deal before signing any hire purchase agreement. Find different models available, compare the costs, and analyze different dealers to find one that offers you the best deal.

2.      Understand the terms and conditions of the hire purchase agreement

You should avoid skimming when it comes to hire purchase agreements. Always read through the terms and conditions, and understand your rights, and duties before signing the agreement. It is also desirable to learn the penalties that come with late payments or defaulting.

For more hire purchase LG TV advice, visit our blog. Also, follow Kenya Credit Traders on Facebook for the best deals in Kenya.