Hire purchase, or lipa mdogo mdogo, is a popular method of payment in recent times. It is possible to acquire essential personal assets such as mobile phones, TVs, or tablets on hire purchase. You can also utilize this payment option for items that are considered expensive such as furniture, appliances such as double-door refrigerators, washing machines, microwaves, and commercial blenders. Leading hire purchase dealers in Kenya, Kenya Credit Traders, offer a variety of assets that you can acquire on hire purchase terms. Visit our website to find the best deals.
Hire purchase agreements
Hire purchase contracts are legally binding documents signed by both the hirer and the owner or the seller. The agreements usually indicate the obligations of both parties as well as their rights. In most cases, the hire purchase agreement also illustrates the penalties and consequences of not honoring the agreements. It is thus vital to ensure that you understand the contents of the hire purchase agreement before signing it. Here are some don’ts when signing a hire purchase agreement.
· Don’t fail to take your time before signing the agreement
Regardless of the item that one opts to purchase on hire purchase, there are chances that it will cost them a considerable amount of cash. It is thus vital to ensure that you are making the right decision about your investment. Ensure that you take time to determine whether the item you want to purchase will be profitable to you. One also needs to learn their financing options before they settle for a high purchase.
· Do not skim
Most people tend to quickly go over terms and conditions before they sign accept agreements. In the case of a higher purchase agreement, it is vital to thoroughly read through the terms and conditions to make sure that you are making the correct decision. This helps you to understand your rights and duties. One also learns of any penalties that they might incur as a result of contravening the agreement. Ensure that you understand the finer details in any hire purchase agreement before signing.
· Do not ignore red flags
Scamming has become rampant in modern times. When reading through the hire purchase contract, ask for advice on areas that you do not understand. Check for any hidden fees or costs. This will help guarantee that you get the best deal.