In Kenya hire purchase is quickly becoming a favorite way to pay for items. There are plenty of items one can acquire using hire purchase. In the past, hire purchase financing was only associated with high-value assets such as cars and homes. However, the scope has changed in recent times. There are plenty of assets you can acquire and pay using hire purchase method.

The rise of hire purchase in Kenya

Whenever one is looking for any asset, there is no doubt that affordability is one of the aspects they keep in mind. Whenever one chooses to pay for an asset outright, it would mean they have to raise the full amount. This is not possible at all times. There are some assets that are necessary for our homes, offices and even businesses. When you cannot acquire such assets outright, you can only resort to leasing them, taking a loan, or utilizing hire purchase.

The number of people choosing this method has increased as a result of assets available on hire purchase. Unlike in the past, even assets that don’t cost as much are now available on hire purchase terms. You can purchase a blender, a smartphone, a laptop, a boda boda, or even pieces of furniture to furnish your home using hire purchase.

Reasons behind hire purchase rule over cash

Hire purchase is quickly replacing cash purchase for different assets in Kenya. The many benefits that come with hire purchase are the reason behind most people switching from cash purchase. Here are some of these benefits.

·         Buy now pay later effect

Unlike in cash purchases, hire purchases allow you to purchase assets that you cannot afford to purchase outright. Dealers, such as Kenya Credit Traders, will only require you to pay a deposit for the asset. Immediately after paying the deposit, you acquire the asset for use, while you clear the balance in installments.

·         Convenient payment methods

Hire purchase offers convenience when you adopt it as a payment strategy for items you require. When clearing the balance, you can choose to pay in daily, weekly, or monthly installments. Most companies have adopted digital payment methods such as M-pesa to make payments easier. You do not have to visit the dealers store with cash to make payments.

·         A wide variety of assets

Another reason why hire purchase rules over cash is the many items available on hire purchase. Companies that offer hire purchase financing have a wide variety of assets you can acquire for use in your home or business. Visit Kenya Credit stores to view household items you can acquire and pay in hire purchase terms.

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