Hi, I want to know the pros and cons of doing hire purchase because it's my first time

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jerrykk:
Hi, I want to know the pros and cons of doing hire purchase because it's my first time

Good one Jerry, I believe this topic would be helpful to many others as well, who are seeking out hire, rental or loan for car driving business.

Hire purchase can make it easy for you to become the owner of the car after the term served, when you are not initially financially buoyant to buy the car outrightly. Compared to lease/ rental, where you just return a particular amount per day/week, hire purchase may be higher but more rewarding - depending on the agreement with the car owner.

On the other hand, Hire purchase needs consistent work from you in order to meet up with the refund. If terms are not met, the car can be collected back. So, you need to understand the terms and conditions well with your assignee.

I found an article on Carmart that sheds more light on this hire purchase.
As a rule, you first need to put down a deposit on the vehicle you need to purchase. This is generally 10% or a greater amount of the vehicle’s value. The rest of the estimation of the vehicle will at that point be paid off in portions over a time of 12 to 60 months (one to five years).
The rates are serious for new vehicles, however less so for utilized vehicles. For recycled vehicles the yearly rate can shift from 4% – 8%; the lower the number the better. The rate could be higher for instance since you don’t have a decent financial assessment.
The article also shed more light on the advantage and disadvantage of Hire Purchase. You can read more - https://www.carmart.ng/public/blog/car-hire-purchase-in-nigeria/