Attain comfort using hire purchase schemes
Feb 28, 2008
WITH the poor saving culture of most Ugandans coupled with the high cost of living, most people find it difficult to buy items like furniture, radios, music systems, washing machines and refrigerators.
By Agnes Kyotalengerire
WITH the poor saving culture of most Ugandans coupled with the high cost of living, most people find it difficult to buy items like furniture, radios, music systems, washing machines and refrigerators.
However, with the introduction of paying in installment, one is able to acquire such items. This payment in installment is commonly known as higher purchase.
Betty Birungi, a practicing nurse was able to buy a washing machine using the hire purchase method. “I tried to save money to buy the machine in vain, not until my boss recommended a store where I bought the item through hire purchase,†she says.
Its common for many people to strain to acquire comfort or expensive items through saving. However, if you are a salaried worker, you do not have to worry because shops and stores in town offer installment selling in form of hire purchase to shoppers attached to organisations.
Hire purchase is a system used to buy an item in installments. In this case, a buyer is required to pay first installment (down payment) between the percentages of 40% to 60% of the total price. The buyer is then given the item and allowed to pay the balance within an agreed number of installments.
Ram Pratheeban a manager at Best Connections on William Street offering hire purchase buying services, says though many shops and stores offer hire purchase services, most organisations are hesitant to recommend their employees.
Using hire purchase system enables a corporate shopper to acquire comfort or expensive commodities without feeling the pinch since payment is spread over a period of time. “The installment payment is met by the organisation through salary deductions of the employees,†says Pratheeban.
If the item is faulty, guarantee is given to the buyer allowing him to return the item. In this case, the buyer is either exempted from paying the remaining installments or given servicing or repair services as long as its within the time of paying the installments.
Besides, with hire purchase, you can make use of the item to generate money to pay the remaining installments. For instance, you can use a car for taxi services or a refrigerator for selling soft and hard drinks.
Seema Punjani the manager Hawn Sung showroom on Jinja Road, says buying items on hire purchase is an indirect way of saving but has shortcomings that are often over looked by the shopper
“Buying items by hire purchase may lead to the loss of both the item and the already deposited money in case you fail to complete the payment in the agreed period,â€She says.
Though most people get excited by the acquisition of the item after the first installment has been paid, they fail to realise that they pay more than the actual price since the hire purchase price is higher than the cash payment price.
Seema says buying through the hire purchase may lead to the accumulation of debts.
When you get one item, you are tempted to take up another whenever you visit the shop just because the method of payment is luring.
The other disadvantage of hire purchase is, if the item gets damaged or stolen, you suffer a financial burden of either replacing it or continuing to pay the installments.
WITH the poor saving culture of most Ugandans coupled with the high cost of living, most people find it difficult to buy items like furniture, radios, music systems, washing machines and refrigerators.
However, with the introduction of paying in installment, one is able to acquire such items. This payment in installment is commonly known as higher purchase.
Betty Birungi, a practicing nurse was able to buy a washing machine using the hire purchase method. “I tried to save money to buy the machine in vain, not until my boss recommended a store where I bought the item through hire purchase,†she says.
Its common for many people to strain to acquire comfort or expensive items through saving. However, if you are a salaried worker, you do not have to worry because shops and stores in town offer installment selling in form of hire purchase to shoppers attached to organisations.
Hire purchase is a system used to buy an item in installments. In this case, a buyer is required to pay first installment (down payment) between the percentages of 40% to 60% of the total price. The buyer is then given the item and allowed to pay the balance within an agreed number of installments.
Ram Pratheeban a manager at Best Connections on William Street offering hire purchase buying services, says though many shops and stores offer hire purchase services, most organisations are hesitant to recommend their employees.
Using hire purchase system enables a corporate shopper to acquire comfort or expensive commodities without feeling the pinch since payment is spread over a period of time. “The installment payment is met by the organisation through salary deductions of the employees,†says Pratheeban.
If the item is faulty, guarantee is given to the buyer allowing him to return the item. In this case, the buyer is either exempted from paying the remaining installments or given servicing or repair services as long as its within the time of paying the installments.
Besides, with hire purchase, you can make use of the item to generate money to pay the remaining installments. For instance, you can use a car for taxi services or a refrigerator for selling soft and hard drinks.
Seema Punjani the manager Hawn Sung showroom on Jinja Road, says buying items on hire purchase is an indirect way of saving but has shortcomings that are often over looked by the shopper
“Buying items by hire purchase may lead to the loss of both the item and the already deposited money in case you fail to complete the payment in the agreed period,â€She says.
Though most people get excited by the acquisition of the item after the first installment has been paid, they fail to realise that they pay more than the actual price since the hire purchase price is higher than the cash payment price.
Seema says buying through the hire purchase may lead to the accumulation of debts.
When you get one item, you are tempted to take up another whenever you visit the shop just because the method of payment is luring.
The other disadvantage of hire purchase is, if the item gets damaged or stolen, you suffer a financial burden of either replacing it or continuing to pay the installments.