Hire purchase as a financing option
Hire purchase plans have become a common financing option in our modern times. Businesses, as well as individuals, prefer using hire purchase to buy new assets. The many benefits of hire purchase are the primary reason to utilize this financing option.
Areas of interest when signing a hire purchase plan
Regardless of the items, one wants to purchase, there is a need to ensure that you get the best hire purchase agreement. Here are some areas of concern before signing a given plan.
The asset you need to purchase
The quality, quantity, and condition of the assets you intend to purchase are part of the basic considerations. One should not purchase items on hire purchase just for the sake of it. It is always desirable that you buy items that you need. If you have a new home, purchase furniture, electronic gadgets, and kitchen appliances that you require. At Kenya Credit Traders Limited, there are a lot of items that we need in our homes, available on hire purchase terms. All our products come in perfect shape as we offer the best quality available on the market.
Ability to pay off the cost of the items
At times, hire purchase can be tempting to any person. The installments payment can tempt you to purchase items beyond your reach only to get difficulties when out to complete the payments. One needs to assess their income and frequency and ensure that it is possible to pay the installments when they are due. When one is unable to clear the payment, the seller has the right to repossess the assets, and you will lose payments you have already made.
The total cost of the assets
When buying household items on hire purchase, one is required to make a down payment before delivery is done. Afterward, you are required to make monthly installments as specified in your plan. The total cost includes the deposit and the installments. Since you are paying in installments, the seller also adds some interest. Before signing any hire purchase plan, ensure that you are getting value for your money.
Delivery and ownership transfer
The best hire purchase plans specify how delivery is done. Kenya Credit Traders Limited delivers all the items to the branch near you. The date to transfer the ownership also ought to be specified in the plan, as long as you have met all the set conditions.
Visit our online store to find all assets available on hire purchase terms.