In Kenya, hire purchase remains one of the best ways to acquire household items in modern times. When you are looking to purchase electronics, you will be keen to determine the best payment option to utilize. Some of the electronics we intend to purchase are expensive and purchasing them outright can prove to be a daunting task.
When you do not have all the cash, you might be forced to settle for low-cost electronics or household goods. In most cases, low cost will mean that you compromise on the quality. However, it is possible to acquire high-value assets even when one doesn’t have all the cash. Here is what makes hire purchase a popular choice for household items.
Pros Of Hire Purchase Plan for Household Items
There are plenty of benefits of choosing hire purchase agreements when looking for household goods. Here is a look at some of the benefits:
1. Access better household assets
If you only choose to purchase items outright, when you have limited resources, it might mean that you miss out on your dream electronics or appliances. In some cases, one might have to settle for low-quality assets. However, hire purchase allows you to purchase the assets to turn your house into your dream home. Hire purchase only requires you to pay a fraction of the cost as a down payment, and clear the balance over the agreed duration.
2. Better repayment terms
When one needs electronics or other household items, taking a loan is one of the available options. However, the major downside of loans is the high interest rates that they attract. With hire purchase, the installments and interest charged are fixed. This means that one can budget to make payments in a timely manner to avoid losing the asset to the hire .
3. Hire purchase financing is easy to obtain
Hire purchase agreements are not complicated as is the case with other financing options. One only requires providing the relevant documents to the hire purchase dealer. In some cases, hire purchase dealers do not consider your credit rating when approving the hire purchase contract. This makes it easier for the hire to get their desired electronics.
4. Own the items at the end of the agreement
While hire purchase is almost similar to leasing, there are some notable differences. One of the most notable difference is that the hirer becomes the owner of the assets after paying the last installment.