Sometimes you may want to buy an item but find it too expensive to make full payment upfront. When this is the case, it would be better to settle for a hire purchase Singapore if you don’t want to tie your money down and prefer to have monthly repayments. In a nutshell, a hire purchase agreement is an agreement to purchase pricey assists without necessarily having to pay the full lump sum upfront.
But appealing as it sounds, you should not rush over making this all-important decision since it is easy to make costly mistakes. That being said, below are some of the things you need to consider before buying an asset via hire purchase in Singapore.
Does Your Business Need the Asset to Grow?
When it comes to leveraging hire purchase Singapore deals, you need to consider the condition of your current assets. Do they need to be replaced? Can you resell them for some capital to fund your new assets? It doesn’t stop at that since you need to factor in if it is the right time to make this big-ticket purchase and if it’s within your means. It is then that you won’t worry about anything after taking this route.
Most assets such as cars and heavy machinery tend to depreciate over time. At the end of your hire purchase agreement, there is a good chance your asset may no longer be as useful either because it’s no longer functional, or that there is a better model out on the market. When this happens, you may be forced to resell the asset at a much lower price than the initial sum plus accumulated costs. No wonder you should always factor in the depreciation costs before turning to hire purchase Singapore.
The Bottom Line
There is more you need to consider before you finally make up your mind to buy an asset in Singapore using hire purchase deals. From deprecation costs and interest rates to repayment terms and costs, take it upon yourself to do your homework to avoid regrets in the long run.
Hopefully, this simple guide will come in handy the next time you want to purchase an asset on hire purchase. Keep in mind it all starts with find a reputablehire purchase Singapore service provider you can count on to reap maximum benefits.