Hire purchase is quickly becoming one of the best payment plans for many buyers in Kenya. The many benefits that a buyer is set to enjoy when they settle for a hire purchase are one of the best reasons to choose them.
Hire purchase is the perfect option for a buyer without all the cash to purchase a given product outright. A hire purchase agreement requires you to only pay a small portion of the total cost of the product. This payment is known as a down payment. Afterward, you will make periodic payments to the vendor to clear the balance.
At Kenya Credit Traders, we have various categories of products for homeowners as well as businesses. We are the biggest and also the best hire purchase dealers in Kenya.
Hire purchase agreements
Hire purchase agreements bind the buyer and the vendor. It contains the terms and conditions of this purchase and the rights of the seller as well as the hirer. It is desirable that a hirer understands the hire purchase agreement before they sign it. Check our other article to understand more about the features of a hire purchase agreement.
Hire purchase requirements
Here are some of the features that must be included in a hire purchase agreement.
- The items covered under the agreement, for example, furniture, kitchen appliances, mobile phones, or electronic appliances.
- Most hire purchase agreements will also include the cash price of the item
- The hire purchase price of the assets. This is the total amount that one pays and includes the down payment and installments.
- The amount of the installments that one has to pay, and the dates when they need to pay them.
- The names and addresses of the buyer, the vendor, and any other parties.
- The rights of the buyer and the vendor.
- Penalties and charges involved in the hire purchase agreement.
- Circumstances that will lead to the vendor repossessing the products.
As a buyer, always buy some time to go through the agreement before signing it. This ensures that you understand the terms and conditions fully before signing up.
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