When looking to purchase a bunk bed for your home, you will want to find out the various options available. Apart from checking the designs, material, quality, and even price, one also wants to determine the payment strategies one can utilize. A good double-decker bed will cost you tens of thousands, and this means that paying in cash can be difficult at times.
Utilizing Hire Purchase
One of the choices when purchasing a bunk bed is a hire purchase agreement. While not every furniture store accepts hire purchase terms, there are dealers in Kenya such as Kenya Credit Traders, that accept hire purchase contracts for furniture.
How Hire Purchase Agreements Work
A hire purchase contract is a credit agreement between the seller and the buyer. This arrangement will see the buyer pay a deposit to the seller, usually as low as 10% of the total value of the furniture pieces they intend to purchase. After the downpayment, one requires paying installments for hiring the double decker bed.
One acquires the double decker bed immediately after paying the downpayment, but the seller remains the owner. As the buyer, you will be hiring the assets and paying monthly installments to the buyer. However, unlike in the case of leasing, at the end of the hire purchase agreement, one becomes the owner of the bed. The buyer only becomes the owner of the assets after making all the payments.
Guide to Hire Purchase Agreements
Before signing a hire purchase agreement, a buyer wants to ensure that they are getting the best deal. Here are some of the features of a hire purchase agreement.
- Payment is done in installments by the buyer over a specified duration.
- As the buyer, you acquire the double-decker bed immediately after paying the deposit.
- The ownership of the bunk bed is only transferred to the hirer after paying all the installments.
- When the buyer defaults payment to the dealer, the seller has a right to repossess the goods. In such a case, one loses the payments they have made to that point.
- Interest is charged on the monthly installments. This makes the high purchase price higher than the cash price.
- Interest rates are usually fixed and unlikely to change during the entire period a buyer is paying the installments.
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