When out to invest in household items, you will always have options. However, any financial decision one makes will have advantages and disadvantages. Hire purchase has become a common financing option for homeowners looking to upgrade assets. Dealers such as Kenya Credit Traders have a wide variety of furniture, home entertainment gadgets, electronics, and other household items available on hire purchase terms.
Why Choose Hire Purchase for Household Items
There are many benefits a homeowner enjoys from choosing a hire purchase deal for household items. One of the biggest benefits of hire purchase is dividing the cost over a duration. When you choose to pay for assets on hire purchase terms, you spread the cost to several months. Splitting the cost into flexible and affordable installments ensures that you do not strain your finances while acquiring new assets.
Another key benefit of hire purchase is that you will be the owner of the assets at the end of the hire purchase agreement. Hire purchase is different from leasing. When you make the last payment to the dealer, they transfer ownership of the assets to you.
How To Handle Hire Purchase Negotiations and Get the Best Deal
Before signing the hire purchase agreement, it is essential to focus on getting the best deal. As a customer, the best deal is not only that is cheap. It is a deal that gives you value for money. Here are some tips to help you negotiate hire purchase deals.
1. Prepare, prepare, and prepare
Information about hire purchase deals is available online. Just like any other financial decision, you do not walk to a hire purchase dealer and sign the agreement. Invest time and effort learning the legalities of hire purchase agreements, terms and conditions, interest rates, and other aspects of the contract. Having the essential information is your best weapon against exploitation by hire purchase dealers.
2. Duration of the hire purchase contract is an essential consideration
The duration of a hire purchase contract has an effect on the interest rates and the total cost. Repaying in a shorter duration saves your money while a longer contract means a higher total cost. Always settle for a hire purchase contract that works for your income and leaves you enough cash for other expenses.
3. Do not be afraid to negotiate and ask questions
It is advisable to engage the hire purchase dealer to ensure you understand the hire purchase agreement. Always ask questions about the interest rates, hidden charges, and other terms and conditions you do not understand. This will save you money in the long run.
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