How Hire Purchase Works — A Complete Guide for Singapore Consumers

Navigating the world of financing can be complex, especially with rising prices and the growing need for greater financial flexibility. If you're seeking a flexible, monthly payment option to acquire essential items like the latest mobile phone, a new refrigerator, or a high-definition television, then buying on hire purchase might be right for you.

A hire purchase agreement is essentially a way for you to acquire a product by making regular, fixed payments over an agreed period, with the ownership transferring to you once all payments are complete.

Learn all about hire purchase from us, Easeebuy, a trusted provider offering seamless service in Singapore. Uncover the meaning of hire purchase, the features of a hire purchase agreement, and how this payment type can make high-quality essentials accessible to everyone.

What Is Hire Purchase?

As mentioned above, hire purchase is an agreement where you pay for goods in instalments over an agreed period, but ownership is only transferred at the end of the payment term, upon the final instalment. This means that you will pay fixed monthly payments, and you will get to use the goods once they have been paid for.

Unlike a personal loan, where you own the item from the start and repay the debt (which incurs revolving interest), hire purchase does not have interest charged on your payments, making the total cost clear and predictable from the outset.

It also differs from using a credit card to pay for large purchases, as credit cards often come with revolving interest rates and can lead to accumulating debt if not managed carefully, whereas hire purchase payments are fixed and lead to ownership.

Similarly, it is different from leasing, where you never own the item, and instead, you are simply renting it for a period, with no option to take full possession at the end of the term.

How Does Hire Purchase Work with Easeebuy?

At Easeebuy, acquiring your desired products through hire purchase is incredibly easy and straightforward. Here are the simple steps:

Choose a Product: Select a product from our page.
Register Using Singpass: Registration is streamlined, allowing for the auto-retrieval of your personal information directly from Singpass, saving you time and effort.
Get Verified: Your identity is securely verified in moments through the Singpass app, ensuring a safe and efficient application process.
Pay Monthly Instalments: At checkout, simply select hire purchase and choose an affordable repayment period from 6 to 24 months. We accept all main modes of payment, including Visa and Mastercard.

Whether you’re looking at a refrigerator instalment plan or a laptop instalment plan, Easeebuy makes it accessible. There are no complicated documents to fill out or strict credit score restrictions that often hinder traditional financing options. It's as simple as car financing — but tailored for everyday essential items.

Key Features of a Hire Purchase Agreement

It’s important to know the features of a hire purchase agreement because some aspects may differ depending on the provider. However, at Easeebuy, our hire purchase agreements are designed with clarity and consumer benefit in mind, offering consistent and transparent terms. Here are the key features:

Fixed repayment period (6–24 months): You have the flexibility to choose a repayment period that aligns with your financial capabilities, ensuring manageable monthly payments.
Consumer becomes the owner after the final payment: This is a fundamental characteristic of hire purchase. Unlike leasing, the ultimate goal is ownership.
No need for a large upfront payment: This significantly eases the immediate financial burden, making higher-value items more accessible.
Application via Singpass: Our integration with Singpass streamlines the application process, making it fast, secure, and convenient.

Benefits of Hire Purchase for Everyday Essentials

People often don't fully realise the significant advantages of hire purchase plans, but they can be a real game-changer, especially when it comes to acquiring everyday essentials without immediate financial strain. This can be especially useful when furnishing a new home, upgrading appliances after a move, or dealing with unexpected breakdowns that require immediate replacements. Here’s an overview of the key benefits of buying on hire purchase:

Easier on monthly budgets: By breaking down the total cost into smaller, fixed monthly payments, hire purchase makes even high-value items affordable without impacting your immediate cash flow.
Encourages financial control: With a predetermined repayment schedule, you know exactly what to pay each month, helping you budget more effectively and avoid unexpected financial surprises.
Flexible across product categories: Hire purchase isn't limited to just one type of product. It works well for a wide range of items, such as refrigerators, TVs, mobile phones, and even air conditioners, allowing you to acquire various necessities.
No late fees or interest (at Easeebuy): Unlike many other financing options, a key benefit of hire purchase with Easeebuy is the absence of punitive late fees or compounding interest, provided payments are made on time. This makes the total cost clear and predictable.

Hire Purchase vs. Other Financing Options in Singapore

In Singapore, consumers have various financing options, and it’s important to know the differences, advantages, and disadvantages of each to ensure you choose the one that best suits your needs and financial situation. Here's an overview of popular financing methods and how they compare to hire purchase plans:

Feature	Hire Purchase (With Easeebuy)	Buy Now Pay Later (BNPL) Services (e.g., Atome, Hoolah)	Credit Card Instalment Plans	Personal Loans
Eligibility	Steady income, Singapore Citizen/PR, Aged 21-65	Generally less stringent, sometimes requires credit check	Requires credit card and good credit score	Strict credit history and income requirements
Ownership	Transferred after final payment	Immediate	Immediate	Immediate
Monthly Commitment	Fixed monthly payments for 6-24 months	Typically 3-4 interest-free payments over shorter term	Fixed monthly payments, often with interest charges	Fixed monthly payments with interest over a longer term
Product Focus	High-quality electronics, home essentials	Wide range of retail goods, often smaller purchases	Wide range of retail goods	General purpose, no specific product focus
Fees/Interest	No interest or late fees (if payments are on time)	Often interest-free, but late fees typically apply	Typically interest-bearing with additional admin fees	Always interest-bearing, high interest for unsecured loans
Impact on Credit Score	Generally neutral if paid on time	Can impact if defaults occur	Can positively or negatively impact credit score	Directly impacts credit score and credit utilisation

While each option has its merits, buying on hire purchase from Easeebuy stands out as a wise option. We are not a moneylender; we provide transparent hire purchase agreements for consumers looking for a no-interest way to acquire higher-value goods without the immediate financial strain of a full upfront payment or the complexities of traditional loans and revolving credit.

Ultimately, the choice is yours, but for those seeking a responsible and accessible path to ownership, hire purchase offers a compelling alternative.

Who Is Eligible for Hire Purchase with Easeebuy?

At Easeebuy, we believe in making quality products accessible without unnecessary hurdles. You don't need a strong credit history to apply for our hire purchase plans. Plus, we utilise Singpass as a secure and efficient way to apply quickly and safely. To be eligible for hire purchase in Singapore with Easeebuy, you simply need to meet these straightforward requirements:

Age: 21–65
Citizenship: Singapore Citizen or PR
Minimum Income: $1,800/month

Why Choose Easeebuy for Hire Purchase?

Easeebuy is uniquely positioned in Singapore as one of the only companies offering a dedicated hire purchase model across a wide range of product categories, providing numerous distinct benefits. When you choose Easeebuy, you’re opting for a transparent, consumer-friendly approach to acquiring the items you need.

Unlike a loan or BNPL scheme, Easeebuy offers a straightforward hire purchase solution. We are also not a licensed moneylender; instead, our model operates much like car financing but for essential consumer goods. This means you can acquire high-quality electronics and home essentials without the complexities or interest often associated with traditional lending.

We are also committed to being inclusive and open to all backgrounds, ensuring that more people can access the products they need. Plus, our Singpass integration not only builds trust through official verification but also significantly reduces paperwork, making your application process smooth and hassle-free.

If you’re looking for a responsible and flexible way to acquire the latest electronics or home essentials, you can read more about us or browse our range of products available on hire purchase.

Get Started — Buy on Hire Purchase Today

Ready to upgrade your home or get that cutting-edge gadget you’ve been eyeing? It’s never been easier to buy on hire purchase with Easeebuy. Browse our extensive selection of high-quality electronics and home essentials today, select the product that meets your needs, and apply now. Our secure Singpass sign-in will ensure a fast and straightforward process, putting your desired items within reach through affordable monthly instalments.

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Have more questions about hire purchase agreements or Easeebuy? Visit our FAQ page to learn more about our services.