Economic advantages for both consumers and credit traders in Kenya’s market, shedding light on how the 15% deposit requirement plays a crucial role in driving affordability

Hire purchase remains one of the most convenient ways to purchase goods in modern times. When looking for high-value assets for your home or business, hire purchase offers you the chance to acquire them without paying upfront. Businesses are also choosing to offer hire purchase agreements to buyers as it is also beneficial to them. In this post, we will evaluate the economic advantages of hire purchases with KCT, for consumers as well as credit traders.

How Hire Purchase Works

A hire purchase agreement is a purchase contract between the credit trader and the consumer. The hire purchase agreement involves a buyer acquiring goods from the trader without paying in cash. However, the customer pays a deposit, also known as a down payment. To clear the total cost, a buyer pays in installments, and there is an interest fee on these installments. This brings about the difference in total cost in a hire purchase deal and a cash purchase.

Economic Advantage Of Hire Purchase For Credit Traders

A credit trader that opts to sell their goods on hire purchase terms will enjoy several benefits.

One of the advantages a trader enjoys by selling items on hire purchase terms is an increase in sales. The basic aim of hire purchase is to make goods affordable. Allowing buyers to pay in installments encourages them to buy assets. This improves sales and thus profits.

Another benefit of hire purchase to traders is the ability to recover goods in the case of default on payments. The hire purchase contract allows for the seller to repossess the goods in the case of defaulting from the buyer. When the seller repossesses the goods, they can resell them and ensure that you do not incur a loss.

Economic Advantages Of Hire Purchase With KCT To Consumers

Consumers are the biggest beneficiaries of a hire purchase agreement. Here are some of these advantages that a consumer is set to enjoy.

One of the biggest benefits of a hire purchase deal is the access to high-quality assets. With cash purchases, you can be limited on quality as most quality items come at a higher cost. With a hire purchase, one acquires items that wouldn’t be affordable in a cash purchase and pays for them in installments.

Hire purchase offers a chance to spread the cost for the consumers. The repayments are fixed, thus allowing you to plan and budget appropriately.

Kenya Credit Traders offers the best hire purchase deals in Kenya.