Hire purchase has become one of the best payment methods for electronics in Kenya. More people are opting to find latest designs, models and brands of electronics and pay using the lipa pole pole method. The many benefits that one is set to enjoy by opting to utilize hire purchase motivate more customers to choose it in modern times.
Hire Purchase Agreements
A hire purchase agreement is a sales contract between the dealer and the hire. The primary aim of a hire purchase agreement is to protect the rights of both parties. Before acquiring any electronics from KCT, one needs to sign the agreement. It is imperative to invest time and effort reading through the agreement and ensure that you are making the right decision.
Most people have questions about electronics hire purchase. Here we take a look on frequently asked questions by customers.
Electronics Hire Purchase FAQs
· Is hire purchase a good idea?
Hire purchase is one of the best ways to purchase electronics. When you do not have the cash to purchase a smart TV or a home theater, hire purchase allows you to spread the cost. Hire purchase comes with fixed interest rates and installments, and this allows you to budget appropriately.
· Why is the total cost of electronics higher than cash purchases?
In hire purchase, one hires the assets to use them before they can complete payments and transfer ownership. There is interest charged on the monthly installments, and this leads to an increase in the total cost. However, the increase in the cost doesn’t outdo the many benefits of hire purchase.
· Can a buyer return the goods to the dealer?
The hire purchaser rights are outlined in the hire purchase agreement. One such right is the right to terminate the hire purchase agreement. You are allowed to return the goods to the dealer and stop making payments. However, you are not refunded any installments after returning them. The already paid installments are considered leasing or hiring fees.
· Can the buyer transfer a hire purchase agreement?
It is possible to transfer the hire purchase agreement. This is a process where the hire sells the goods to someone else. The new buyer takes over the payment of the installments to the dealer. However, the original hire will need approval from the hire purchase dealer before processing the transfer.
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