Advantages:
• Able to acquire the item after only paying the deposit.
• Its an immediate saving for the family when the item purchased is durable.
• Able to receive other services such as repair and maintenance while still paying for the item.
• The consumer is able to get immediate use of the article.
• Its an income generating item one is able to raise money using it to pay the remaining amount
Disadvantages
• The final cost price of the item is higher than the original cost price as the interest is charged
• There is the risk of the families overspending by buying many items through the hire purchase
• It’s an income generating item one is able to raise money using it to pay the remaining amount.
Titany answered the question on October 14, 2021 at 09:14
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