When out to add assets to your home or business, you will learn that hire purchase is one of the best ways to pay for the assets. There are plenty of benefits that come with hire purchase. This has made it a popular mode of payment for high value assets.
In Kenya, hire purchase is becoming a preferred payment strategy for even items that people used to purchase outright in the past. You can purchase mobile phones, TVs, kitchen appliances, electronics and even furniture using hire purchase. Visit Kenya Credit Traders website for a broad range of assets you can acquire on hire purchase terms.
Is Hire Purchase the Right Option?
While hire purchase is one of the best ways to pay for assets, it is not the only choice. Here is a check list to help you decide whether to settle for a hire purchase.
· Hire purchase, leasing or a term loan
When you do not have all the cash to spend on a given asset and purchase it outright, these are the three main options. A term loan will need you to seek a loan from a lending institution. Leasing on the other hand is the best choice if you do not plan to retain the asset. With leasing, you are required to return the asset at the end of the lease contract. Hire purchase on the other hand allows you to own the asset at the end of the hire purchase contract.
· Are you suitable for hire purchase?
Before signing for a hire purchase agreement, one needs to ensure they are capable of making payments. In most cases, the hire purchase dealer requires you to bring proof of steady source of income. You need to prove that you can pay your installments. Failure to honor the agreement will see the hire purchase company repossess the assets.
· Understanding the hire purchase agreement
Before signing a hire purchase contract, there is a need to ensure you understand the hire purchase agreement terms. This helps you learn your rights as well as duties. Check this article to learn characteristics of a hire purchase contract.
Follow Kenya Credit Traders on Facebook for best hire purchase deals in Kenya.