Are you looking to take your home entertainment to the next level? Do you have a renovation or remodeling project? Are you on the lookout for the best kitchen appliance deals?
Home improvement doesn’t always involve spending on new constructions or renovation projects. At times, all that one needs to make their home more functional is looking for quality appliances. You can Improve your kitchen by spending on a cooker, a fridge, or even a dishwasher. Your living room will become livelier when you opt to spend on an Android TV and a home theater.
Cash Purchase
Cash purchases are popular among homeowners in the market to acquire assets or items. In a cash purchase, one pays outright for the items. After the payment, you acquire the items and become the owner. However, the high cost of kitchen appliances and home entertainment electronics means that at times a cash purchase may be out of reach.
Hire Purchase Agreements
Hire purchase agreements are the ideal option for a homeowner without cash to buy assets outright. In a hire purchase deal, after determining the assets to purchase, you will pay the dealer as low as 15% of the cost. This payment is known as a deposit or a down payment. The dealer allows you to take home the items and use them. However, one needs to make installment payments to clear the balance and own the items.
Cash Purchase Vs Hire Purchase for Appliances and Home Entertainment Appliances
Hire purchase and cash purchase differ in various ways. Each option has benefits as well as shortcomings. Here are some cash purchase vs hire purchase considerations.
1. Payment method
In a cash purchase, the buyer pays for full price of the items outright. On the other hand, hire purchase involves splitting the cost into affordable installments.
2. Ownership of items
In a cash purchase, one immediately becomes the owner after making an outright payment to the dealer. In a hire purchase agreement, one acquires items after the down payment, but they do not immediately become owners. One only qualifies to own the assets after the last installment.
3. Total cost of the appliances
The total cost of appliances in a cash purchase is usually lower than in the case of a hire purchase. The difference is brought about by the interest charged on the installments. While the total cost is higher in a hire purchase deal, the affordability and flexibility of the installments make hire purchase a favorable option.
Kenya Credit Traders is your top hire purchase company for appliances and home entertainment.
