Investing in Your Assets
Many individuals and companies are tempted by leasing because of the lower upfront cost. However, in the long run, leasing is a "forever expense" while Hire Purchase is a "temporary commitment" that leads to 100% ownership.
The Financial Breakdown
When you lease, you pay for the depreciation of the vehicle plus the lessor's profit. At the end of 3 years, you have nothing. With Hire Purchase:
- You pay a 50% deposit.
- You pay fixed monthly installments for 18 months.
- Result: On month 19, you own the car outright. It is now an asset on your balance sheet that you can use as security for future growth.
Tax and Utility
You drive the car immediately! You get the full utility of the vehicle for your business or personal life while building equity every single month. It is the definitive path to debt-free ownership in Kenya.