Disadvantage of hire purchase

[cherry123]

Hire purchase is using a product or item ahead of making a full payment. You just be paying intermittently for the item. But the snag is that if you don't finish paying before or on the due date. The seller will take back the item . What do think about this?

 

[Magnus2022]

Hire purchase agreements is lopsided and very unfair especially in Nigeria where most of the people that enter into the agreement are illiterate and unemployed. It is unbecoming that even some state governments have involved in exploring the less privileged by participating in hire purchase business.

 

[Shavkat]

This is not a good practice in business, but it is possible. It is best to have allotted budget for advance usage of items or products.

 

[Reedex]

The disadvantage of taking an item on hire purchase is that if you fail to make payment for certain period of time, the item will be recouped from you and you will lose everything.

 

[IB D]

Hire purchase puts the buyer at a complete disadvantage. By the time you finish paying for the product, the product has depreciated so far.

 

[cherry123]

The disadvantage of taking an item on hire purchase is that if you fail to make payment for certain period of time, the item will be recouped from you and you will lose everything.

Yeah this is why it is not wise to do this especially if you are not sure of getting the money to pay back when due to get the bought item

 

[Reedex]

Yeah this is why it is not wise to do this especially if you are not sure of getting the money to pay back when due to get the bought item

It is an important to plan before you get yourself involved in hire-purchase because it could lead to losing your funds at the end of the day.

 

[uptrendfinancialsignal]

One of the disadvantages of hire purchase is that you will lose everything if you fail to meet up with payments.

 

[SHAHID987]

This type of purchase have a lot of disadvantages as If you'll not meet the deadline for payment you'll loose almost everything luckily this practice is not common here.

 

[Reedex]

The major disadvantage of hire purchase is that they are never kind when it comes to receiving their payment, if you missed the payment, they would collect the items back from you.