Here are some other benefits:

• With a hire purchase deal the interest is front loaded which means when settling a loan, the borrower will not save on interest, while a bank loan usually has a penalty interest for early repayment. Naas Credit Union on the other hand charges interest on a daily basis so you will save on interest costs by clearing the loan early, in part or in full.
• Sometimes with a hire purchase deal a balloon repayment is included at the end to bring down the regular repayment. This has a big impact on the cost of the loan for the borrower, as well as a very large last repayment.
• Watch the term, often a hire purchase agreement is over the term plus one month (sometimes this even stretches to plus three months). This term is not always clear and has the effect of seeming to reduce repayments while increasing the cost of the loan.

We hope you find this information useful.