Adding electronics to your home is one of the best decisions you can make. TVs, subwoofers, home theatres and other electronics can make your living space livelier when you add them to your living space. These electronics also make work easier in our living spaces.
While electronics are a crucial addition to your living space, at times their cost can be prohibitive. Quality TVs, such as android and smart TVs, can be expensive and out of reach especially if you intend to purchase them outright.
Payment Options for Electronics
When purchasing electronics, one will be eager to learn the payment options available to them. In Kenya, most sellers only take cash payments for electronics. With cash sales, one needs to pay the full cost of the items they intend to purchase.
In recent times, hire purchase has emerged as one of the best ways to pay for electronics in Kenya. Dealers accepting hire purchase payments mainly brand it lipa mdogo mdogo or lipa pole pole. Hire purchase involves providing a fraction of the total cost to the dealer as a down payment. When one makes the down payment, they acquire the assets for their use. The remaining balance is cleared in the form of installments.
In some instances, people turn to short term loans to finance electronics purchase. In modern times, one can access loans through digital lending platforms. After acquiring the loan, one makes a cash purchase for the electronics, and they keep repaying the loan.
Hire Purchase comparison with Other Payment Options
Hire purchase vs cash purchase
Hire purchase has several benefits in comparison to cash purchase. With hire purchase, one has the chance to spread cost. You will make payment within fixed periods, and this allows you to budget for your cash.
One might miss out on electronics which cost a higher amount if they opt for cash purchase. On the other hand, hire purchase makes it possible to acquire such items, considering that you only pay a fraction of the cost and clear the balance over time.
When compared to cash purchase, the total cost in hire purchase is higher. This is due to interest charged on the installments.
Hire purchase vs digital loans
While these two payment options allow you to pay for an asset over a long duration and thus spread the cost, the main difference is the interest rates charged. Interest rates are fixed in hire purchase, thus allowing you to budget for the payments with ease. With digital loans, the interest rates change depending on central bank rates. This can increase the total cost of the asset.