ADVANTAGES OF HIRE PURCHASE AGREEMENT
- Buyers can manage to buy expensive goods
- Buyers have a possibility of obtaining special reduction (price cuts)
- Buyers benefit if the rate of inflation is greater than the cost of credit
- Payments are spread over a period of time he can save money for other
- Items bought are used while paying for them
DISADVANTAGES OF HIRE PURCHASE AGREEMENT
- cost of buying goods on credit is more expensive because of interest
- Buyers are made to buy what they cannot afford
- buyer suffers with instalments for a long time
- Items bought can be repossessed if the buyer fails to pay the full instalments
- buyer cannot sell the item until he has finished paying for it
- buyer will not be the owner until the final instalment has been paid
