There are assets or equipment that are vital in our homes or businesses. In some cases, these assets can prove to be expensive, and this means that there is a need for proper planning when in the market to acquire them. One needs to determine the best quality and also focus on getting the best deals. Hire purchase is one of the most popular financing options for expensive items.
What Is a Hire Purchase Agreement
A hire purchase agreement is an arrangement that allows one to acquire assets without having to pay the full price upfront. Cars, furniture, kitchen appliances, and electronics can prove expensive when one opts to purchase them in cash. When you do not have the cash at hand, you will want to find out financing options available to you. Hire purchase is one such option. This agreement allows you to pay a deposit for the assets while the rest of the cost of paid periodically in the form of installments. Once one pays all the installments, they become the owner of the assets.
Benefits of hire purchase
There are plenty of reasons to consider hire purchase financing when in the market to acquire assets.
1. Acquire assets immediately
One of the best parts of hire purchase is that one has the opportunity to acquire items they need immediately. If you are looking for a smart TV, digital TV, or Android TV, you do not have to wait until you save enough to acquire it. At Kenya Credit Traders, you can pay as low as 10% of the total cost of the TV and acquire it. Immediately after paying the deposit, one is allowed to take home the TV and use it.
2. Spread the cost
One of the major benefits of hire purchase is the chance to spread the cost of the assets. You will have an extended duration to complete payment for an asset. This frees you cash to utilize for other expenses as well as purchases that you need for your home or business.
3. Low interest rates
The total cost of assets when using a hire purchase is higher than the cash price. This is due to interest charged on the installments. However, the interest rates in hire purchase financing are lower when compared to other financing options such as term loans. These rates are also fixed, and this ensures that the total cost of an asset doesn’t change throughout the hire purchase agreements.
Get the best hire purchase deals at Kenya Credit Traders.