Definition:
Hire purchase Singapore or rent is a financial arrangement wherein a customer can buy a product by paying the initial installment while paying the principal amount and interest during an agreed period. This enabling initiative is believed to have started in the 19th century in the United Kingdom. Since then it has become very popular among the customers. However, the way around, if the said buyer cannot pay the amount plus interest by the agreed time, his/her vehicle may be repossessed again by the seller. These contracts are mostly used by those who want to buy a car or any vehicle or high-value electrical goods.
Advantages of hiring to purchase Singapore:
- This type of financing allows the customers to buy a costly car with a little cash in hand.
- It is comparatively lower than buying on bank loans.
- It is also beneficial for people who always plan the budget and cannot release a big chunk of money at one time.
It is also important to note that such financial arrangement helps the customers and the suppliers since this cuts the chances of facing a setback during a slowdown or an economic downfall.
