Hire purchase or loans

[Veetos12]

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?

Hire purchase is when you buy a car and pay gradually but until you complete the payment the bus is not yours totally while loans can be gotten to buy the bus at once but the interest on the loan maybe too much as compared to higher purchase. I will advise he go for hire purchase.

 

[Adetayo100]

Hire purchase and loan in buying something is very bad, but instill prefer the hire purchase to loan because you can be remitting payments everyweek or month and still get a little money for your upkeep too.

 

[mubinadaddy]

This is what he can come into conclusions but himself, if he has strategic plan on how to repay the loan easily then he should take loan and join the one that he has with him and buy the bus, but if he can't then I will advice him to take the hire purchase and work towards it and be paying installment ally.

 

[Irfanali]

Renting / Leasing Rental Purchase (HP) or leasing is a type of asset finance that allows firms or individuals to seize and control an asset over a set period of time while renting to reduce the value of the asset. Pay rent or installments.

 

[Aricha josef]

I will go for hire purchase..
The rate at which people or rather organizations give out loan and interest attached to it is alarming..Imagine a corpe ative giving 300,0000 and it's interest monthly is 8%..
This is so not it for me..The interate rate is too high..
Unlike hire purchase,if you are given a machine or car per say,you pay instalmentally depending on your agreement which can be monthly,quarterly or annually...I think this is a good one if you ask me..

 

[Azmatali]

wow good i tell you about it The main difference between using a personal loan and a hire purchase agreement to buy a car is that with a personal loan you borrow money, pay for your car, and own it immediately. With a hire purchase agreement, you don't own the car until you make the final repayment.....

 

[Seun4luv]

Hire purchase is much more easily compared to a personal loan. Hire purchase agreements tend to have a lower rates but you could get an even lower rate by using a personal loan provider. In essence, Hire purchase finance and personal loan repay the loan in the same way.