Hire purchase or loans

[Presido]

A friend of mine wants to get a bus for a working purposes but the resources available(money) at the moment is not really sufficient to get the bus, he is thinking of either obtaining loans or going for hire purchase where he will be paying in instalment.
Which is more prefferable?

 

[Holluwaphemmy]

Hire purchase is more preferable because the money can be paid instalmentally. Loan on the other hand has to do with you seeking for monetary assistance from an individual or bank. He should go for an hire purchase instead if going to purchase the bus after obtaining the loan

 

[Mary]

My advice to your friend is to go for hire purchase since the bus is for working and not for just personal use, definitely he would repay certain amount every months rather than loans where you can be threatened if the money is not paid as at when due

 

[Ridorz]

The both hire purchase and instalment no one this food. But i thought loan is better than hire purchase. Because if you get something hire purchase the amount that will added to nomaly price will double than getting loan.
I still prefer loan than hire purchase.

 

[adazeez1995]

Its not advisable to take bank loans when you are a small business owner. He should use hire purchase method instead, where you could spread payment over a period of time. With this, he would be motivated to work harder knowing that he would soon be the owner of the vehicle.

 

[Abisola]

Hire purchase (HP) or leasing is a type of asset finance that allow firms or individuals to possess and ... interest rate charged for financing

 

[Princeeffiong]

Higher purchase or loan? It all depends on who is giving you is giving you either of it. I once drove a car on higher purchase but I thank God the car never took my. Loan on another hand require collateral

 

[Josh9493]

hire purchase or loan? To me hire purchase is good so you can get to be paying the part of the money per day depending on your agreement so you can really be useful with the product

 

[Olahab]

HP is a financing solution suitable for businesses wishing to purchase assets without paying the full value immediately. The customer pays an initial deposit, with the remainder of the balance and interest paid over a period of time. On completion, ownership of the asset transfers to the customer.

 

[kayode10]

Both are almost the same thing but have little differences. You owns the product once you're finished paying back the debt when you are acquire a property through hire purchase. This is quite different with loans. You need collateral to deposit in order to secure a loan from financial institution. Hire purchase on the other and require only two guarantors.

 

[Papikarl]

A friend of mine wants to get a bus for a working purposes but the resources available(money) at the moment is not really sufficient to get the bus, he is thinking of either obtaining loans or going for hire purchase where he will be paying in instalment.
Which is more prefferable?

In my own opinion, I think hire purchase is the best for your friend in the sense that he has to pay in installments, it can be weekly or monthly depending on the agreement. But it will be difficult when paying in bulk and with interest.

 

[solomonmali]

Hire purchase is an arrangement for buying expensive consumer goods, where the buyer makes an initial down payment and pays the balance plus interest in installments. The term hire purchase is commonly used in the United Kingdom and it's more commonly known as an installment plan in the United States. However, there can be a difference between the two: With some installment plans, the buyer gets the ownership rights as soon as the contract is signed with the seller.​

 

[Snazzy001]

I think the two options are both talking about the same thing .hire purchase and loan and still talking about you getting money from someone in the name of borrowing .you will have to pay at the agreed time

 

[Victor001]

Going for loan is not advisable as there is tendency for hiccups to happen.higher purchase will still afford you little cash to run your daily activities while you pay higher purchase and it will bond your relationship.

A friend of mine wants to get a bus for a working purposes but the resources available(money) at the moment is not really sufficient to get the bus, he is thinking of either obtaining loans or going for hire purchase where he will be paying in instalment.
Which is more prefferable?

 

[Presh1503]

They are actually both similar and their payments technically are the same but collecting a loan the interest charged may be too much for you to pay but hire purchase installment could still be negotiated add can be paid at an affordable price

 

[Folaham]

Neither higher purchase not loan as both required payments of interest (usury) which is forbidden for me. I will rather go for what I can afford instead of going to higher purchase and if funding can come inform of love money (funds from family and friends) to support me, then I will go for something higher

 

[sam386150]

Hire purchase or loans,to collect a hire purchase I better than loans because hire purchase will make u serious,In anything your doing will loans are you can only make you think because everything you do or work,your mind will depends on the business your doing with the loans

 

[Trojan8]

In both cases he has to pay interest on the full amount of the bus. But with hire purchase he would be paying that interest to the owner of the business. The owner is most likely to be more accommodating if there's any default to the payment plan. A lender won't exactly be forgiven if you don't fulfill your installment payments so hire purchase is the better option.

 

[Milz]

Hire purchase would always be better option in this case. Writing from experience, hire purchase allows installmental payment which is spread for a couple of months and I don't think your friend have a good collateral to offer the bank for a loan.

 

[btaliat]

Hired purchase is still okay. The motive to own the car will be driving him to work harder to secure the car. If he obtain loan, the interest on the loan may be too high hereby making it difficult for him to repay.