Hire purchase is quickly becoming a preferred payment method for assets in Kenya. It is possible to purchase almost any asset even when you do not have all the cash to make an outright purchase. There is an increase in the number of consumers utilizing this option to purchase assets.

What is a hire purchase?

This is a method for buying expensive consumer items where one makes a down payment and clears the balance over a period of time. The price of items in hire purchase might be higher than purchasing outright due to interest charged. However, the many benefits that hire purchase offer eclipse the extra cost. Check this article to learn some of the benefits of hire purchase.

Hire purchase in Kenya

In the past, most people have associated hire purchase with high value items such as cars and land. However, in recent times, even personal or consumer items are available on hire purchase. Lipa mdogo mdogo TVs, smartphones, refrigerators, furniture and blenders are just some of the items available on hire purchase. This is a convenient way to acquire such assets for your home or business.

Hire purchase companies

Not every company accepts a hire purchase form of payment for their assets. It is thus vital to focus on finding a reliable company selling goods on hire purchase terms. Different hire purchase companies do not offer the same quality of services. It is thus vital to keep the following in mind when looking for one.

·         Licensing

Hire purchase in Kenya is regulated by the hire purchase act. One of the requirements for a company to sell on hire purchase is seeking licensing from the government. Before transacting with any given company, there is need to check if they are authorized to offer hire purchase deals.

·         Reputation

Before choosing a hire purchase dealer, there is a need to learn if they are reliable. While online shopping is a convenient way to shop, it is also possible to land in the hands of scammers. Check reviews and ratings from customers that have purchased from a given hire purchase company before choosing it. It is also advisable to seek referrals from friends or relatives who have purchased assets using a hire purchase agreement.

·         Longevity

The number of years a hire purchase company have been in the market is also a crucial consideration before choosing them. You are likely to enjoy quality services if you select a company that has been around for some years.

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