Thread by @RuthlessFocus_

ON BUYING CAR ON HIRE PURCHASE (LIPA POLE POLE) THIS IS WHAT YOU NEED TO KNOW:
▫️That the customer must make an initial deposit on the car usually from 50% or more of the Hire purchase price
▫️That the cash price of the car will go up by 100k.

THREAD

and this is usually on small cars and saloons. Cars like Tx and Prados may have up to 200-250k on top of their cash prices. The price after the interest is called Hire purchase price.
▫️That the time of repayment depends on the dealership you are buying from. From 3-22Months Max

▫️That in many dealerships if you are able to pay for the balance within 3 months, you will only pay the cash price. NO INTEREST. This entirely depends on the dealership you are buying from. Some may charge you 10k per month for the 3 months.

▫️That apart from the 50-60% deposit on the car, you will also be required to pay for 20,000 for car tracking device installed in the car by the dealer. You must also pay for a COMPREHENSIVE INSURANCE for the car. The insurance can be paid in 2-3installments, depending on the

dealership and negotiation. Alternatively, if you don’t have the 20k for the tracking device and you can’t pay for the Insurance, some dealership will add that cost on your balance that you will be paying per month. (NOT ALL DO THAT) it depends on your negotiation.

▫️That you will only avail your KRA PIN and ID copy to the dealer. No guarantor or bank statements are required by the dealers. There is no where your bank account is linked to the dealer. You will pay your monthly installments to the dealer willingly as agreed in the sales

agreement.
▫️That your monthly installments will be paid according to the dates stipulated in the sales agreement (You can always call the dealer to communicate if you are not able to pay as agreed, they will listen but ensure you pay within the month)
▫️That the installment you

will be paying per month will be the total hire purchase price minus the deposit, divide by the no. of months agreed usually 10-15. You can always choose a date within the month when you are comfortable to pay the installments. Try to pay even before time in some months to build

a good relationship with the dealer so that in an even you will be late, they will understand,.
▫️That the tracking device installed in the car shall only be available and accessible to you after you have finished paying for the car. It is yours to use after.

▫️That if you fail to pay as agreed in the agreement, month 1 the dealer will try to understand and plead with you to pay. If you fail for 2 consecutive months without paying, the dealer will STOP car. Send auctioneers to bring the car to the yard. This also depend on the dealer

You are dealing with. Some will not even take the two months. Some will give up to 3 months. Always strive to pay even if it is half the total monthly installments, it will be hard for the dealer to send auctioneers. Don’t switch off your phone and block the dealer.

▫️That once the car has been repossessed, the dealer will give you a window period to redeem yourself and take the car, usually 2 -3 weeks. But just know that when you will be redeeming yourself and taking the car back, you must; Pay for the auctioneering expenses on top of your

balance.
▫️That if you are not able to pay the balance due, the car will be put on sale and the dealer will not refund you. In case you are not able to pay, I advise you to do this; Look for micro finance to buy it out and pay the micro finance as agreed. They will pay the

dealer and you will be servicing the loan.
CONCLUSION: Don’t be in a hurry to sign the agreement, agree with the dealer on terms that favour you as the client. If the dealer offers you more months, don’t say you will finish before time, even if you know you can. All the best 🙏