Buy Now Pay Later Arrangement Fees

paullivnat

This is my first post , not sure where to put it

I have been looking into buying a Yamaha Keyboard online and saving myself about £150 on Reidys.Com website I can pay by cash or credit card or sign up for various finance options :

For example: To finance an order over 36 months worth £500 , it would be a £50 deposit and then £16.34 per month. Please note: The deposit is taken as soon as the signed finance agreement has been processed. 19.9% total repayment 638.24

or

Buy Now Pay Later loan agreement. With the exception of a 10% deposit and a £35 arrangement fee then make no further payments for 9 months.
Provided you pay the final balance in full before the 9 month BNPL period expires, you will pay no interest!

£457 less £45.70 deposit plus £35 arr. fee and 9 payments of £45.70 =£492
How can this be interest free
If I pay using 19.9 % (as above) over 9 month my total repayment =£491.85 thats 15p less than BNPL without the 29.8% if I fail to pay it all off in 9 months
Wot a scam

geordie_joe

Sorry, I seem to be having a senior moment, as I can't understand your figures.

paullivnat wrote: »

For example: To finance an order over 36 months worth £500 , it would be a £50 deposit and then £16.34 per month. Please note: The deposit is taken as soon as the signed finance agreement has been processed. 19.9% total repayment 638.24

In the above you seem to be saying that if you buy something for £500 on finance with 19.% interest you will pay £638.24

paullivnat wrote: »

or

Buy Now Pay Later loan agreement. With the exception of a 10% deposit and a £35 arrangement fee then make no further payments for 9 months.
Provided you pay the final balance in full before the 9 month BNPL period expires, you will pay no interest!

£457 less £45.70 deposit plus £35 arr. fee and 9 payments of £45.70 =£492
How can this be interest free

But in the above you seem to be saying if you buy it on Buy Now Pay Later you will only pay £492

paullivnat wrote: »

If I pay using 19.9 % (as above) over 9 month my total repayment =£491.85 thats 15p less than BNPL without the 29.8% if I fail to pay it all off in 9 months
Wot a scam

And in the above you will only pay back £491.85 with 19.9% interest.

I'm sure you, and everyone else can see what you mean, but spare a little explination for me.

I'm sure you are right about it being a scam, many companies use the headline "Interest Free" to mask other charges that actually make it more expensive!

paullivnat

Sorry, the first paragraph was a finance example from the website. The Item I want to buy is only £457.

They probably would not allow you take repay over 9 months as only 36 and 48 month are listed as terms.

The govenment have a TAKE IT AWAY scheme for buying musical instruments completely interest free 10% deposit then 9 monthly payment on any amount between £200 and £2000. But only 40 shops in the country run the scheme and the prices are usually more expensive to start with than buying on finance scam or no scam. you just can't win

geordie_joe

paullivnat wrote: »

Sorry, the first paragraph was a finance example from the website. The Item I want to buy is only £457.

Thanks, it's all clear now.

I bet every one could see that except me