Purchasing items on hire purchase terms is a common practice in Kenya. Consumers can acquire a wide variety of assets on hire purchase contracts. This includes lipa mdogo mdogo phones, boda bodas, vehicles, land, and even household items. The many benefits that come with hire purchase are the main reason behind its growing popularity.
How Hire Purchase Works
Hire purchase is different from cash purchases in various ways. In a cash purchase, a buyer selects the items they need, pays for them upfront, and immediately acquires ownership title for the goods. This is not the case with hire purchase deals.
A hire purchase deal is the right option for consumers who do not have the cash to pay for items upfront. In the case of lipa later deals, the dealer requires the buyer to commit to acquiring the items by paying a deposit. The best dealers such as Kenya Credit Traders allow the buyer to pay as little as 15% of the total cost. The remaining cost is spread out in installments. The repayments can be daily, weekly, or monthly, depending on the items and the contract.
How Kenya Credit Traders Simplify Consumer Purchases
There are many benefits that consumers enjoy when they opt to hire purchase items. These benefits include the opportunity to spread the cost. The buyer gets the chance to distribute the cost over a duration. This makes the items more affordable as one doesn’t have to wait until they have enough cash to make an upfront payment. However, the biggest benefit of hire purchase deals is the convenience they provide. Here’s how Kenya Credit Traders simplify consumer purchases.
One of the ways that hire purchase dealers enhances affordability and convenience for consumers is by allowing them to shop from the convenience of their home or office. You do not need to physically visit the credit traders to view their catalogues. The best dealers have an online catalog allowing you to view a variety of items available on hire purchase terms. After viewing the items, one can visit the hire purchase dealer to sign the contract and acquire the items they need.
Another reason why you need to consider a hire purchase deal is the flexibility when making payments. The installments are set depending on the amount that the consumer is able to pay every month. The repayments are also fixed. This allows you to budget ahead for the payments. At the end of the installments, the consumer receives the title for the goods becoming the owner.
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