PC World Business Smartplan - spread the cost of IT

blue_monkey_2

Hi guys,

Does anyone use this service from PC World? I was presented with a leaflet last week when I went to get something else but I need a new laptop and now I am condiering whether it is worth it.

Because I am VAT registered I can get the VAT on the rental back and I pay for the PC over 3 or 4 years, at the end of the term you continue to rent something else or give it back.

For £500 (which would get me a pretty decent laptop) it is £4.39 a week over 4 years, I guess it'll be more over 3 years. It would mean in 3 years I can update the laptop to something newer.

So does anyone else use this service? Not sure whether I should bother or just use my overdraft to buy a new laptop and then it is mine and I should have the money to pay for it in a few weeks time and I'll pay myself back. What do you think? I'd be interested in another opinion.

http://www.pcwb.com/cms/resource_centre/services/spreading_the_cost_of_your_it.html

fox2319

Don't touch it with a bargepole. Over 3 years, it will cost you nearly £700 for a laptop which they'd charge you £500 on the day for or you could get elsewhere for a lot less. The other thing to remember is that at the end of it, you don't actually own the computer, you're only renting it.

One of our friends who runs her own business was royally ripped off by this bunch for a PC she needed for work. She bought the PC and a camera for video editing. The PC was very basic and didn't even include the firewire needed to link to the camera, the customer support was terrible and it put me off them for a long time. In addition, because you buy it as a business customer, you are not covered by the consumer credit act and they can pretty much do what they want to you.

isofa

If you want to look at business leasing, look at it with a professional company, NOT under any circumstances, PC World - they are awful.

blue_monkey_2

OK, thanks. I've just got my calculator out - which I did not do before and you are right, well over the cost of the new PC. I think I'll buy outright and pay the overdraft fees for a free months. £20 has to be more worthwhile than £250!! Eek. I am glad I asked now. Thank you all.

It was not so much the business leasing, more the way they sold it to me, that I could have the laptop at cost and spread the payments via leasing. I said I would go back and talk about it but never did because of other commitments, never got the calculator out though.

A £400 PC would cost me £3.51 weekly plus VAT (Which I can reclaim though) but that is £3.51 x 52 wks x 4 yrs = £730.08 PLUS VAT. Good grief. I must be losing my grip to not get the calculator out beforehand. I wish I could thank you all 5 times for saving me as I was going to speak to them today and I am sure they would have sold me the idea.

isofa

If in doubt talk to your accountant, there are good arguments for business leasing, if it's done properly (but not via PC World!), however we prefer to buy all our equipment, we make it last many more than the "3 years" IT is supposed to - we just prefer to own things outright!

Dickie

I must comment that it is not PC World that the leasing product is provided through. It is an independent company - a professional one isofa!

Leasing IT equipment is a sensible choice for businesses that are in the know. You can claim vat back on the rentals, the fixed payments allow you to budget properly and small weekly payments mean that cash can be kept in teh business. Many small businesses use the product because when they are growing they need strong cash-flow. Renting your equipment allows this.

Dont think just of the cost, more of the opportunity cost.

If your business does not suffer cash-flow problems, has lots of liquid cash and money to throw away on technology that will be out of date in 3 years - dont do a smartplan, otherwise it is worth considering.

The company that provides it is not part of PC World so dont tar them with the same brush. They are a worldwide entity with operations in UK, France, Spain, France, Italy & USA. So Isofa, is that a none professional company? Please do your research before making lame comments.

yours

A person in the know

CLLC

If it is of any good , if you buy direct from the manufactuer they give you a payment plan to buy with.

But the minimum is £350 to qualify for the paymetn installment plan , also i know curry's do something similar

Hope this helps

superscaper

Dickie wrote: »

Please do your research

Likewise. In particular forum etiquette and rules. If you disagree then you can do so without calling another poster's comments lame.

Fifer

Dickie wrote: »

If your business does not suffer cash-flow problems, has lots of liquid cash and money to throw away on technology that will be out of date in 3 years - dont do a smartplan, otherwise it is worth considering.

In the interests of balance, a cash rich company would probably be more likely to be "throwing away" money leasing rather than buying.

superscaper

Fifer wrote: »

In the interests of balance, a cash rich company would probably be more likely to be "throwing away" money leasing rather than buying.

Also whether the financing is operated by a separate company or not the technical support is still with PC World and that's definitely not a wise fincancial decision. Absolutely awful whether it's PC World or PC World Business and far more critical when it's business equipment.

isofa

Dickie wrote: »

I must comment that it is not PC World that the leasing product is provided through. It is an independent company - a professional one isofa!Leasing IT equipment is a sensible choice for businesses that are in the know. You can claim vat back on the rentals, the fixed payments allow you to budget properly and small weekly payments mean that cash can be kept in teh business. Many small businesses use the product because when they are growing they need strong cash-flow. Renting your equipment allows this.Dont think just of the cost, more of the opportunity cost.If your business does not suffer cash-flow problems, has lots of liquid cash and money to throw away on technology that will be out of date in 3 years - dont do a smartplan, otherwise it is worth considering. The company that provides it is not part of PC World so dont tar them with the same brush. They are a worldwide entity with operations in UK, France, Spain, France, Italy & USA. So Isofa, is that a none professional company? Please do your research before making lame comments.
yours

A person in the know

Was that a joke?!

What a wonderful post "Dickie", "person in the know" i.e. PC World/DSG employee, 1 new account, 1 new post, I rest my case.

Unfortunately you know nothing of my industry experience. And I have plenty.

Whilst I agree that leasing can be very cost effective for some companies - not all - they are many other schemes operating for small business and tax relief and various levels. Anyone with a good grasp on accounting would point out all manner of advantages and disadvantages.

With PCs lasting for a lot longer than the standard 3 year write down, leasing isn't as cost effective as you make out - again research first please, and if you can muster it, perhaps an intelligent post?

I stand by every one of my comments above, from my real world experience, dealing with small, medium, large and public organisations.

I do not know one company, small or large we deal with as a consultancy, who'd look once (let alone twice) at business leasing originating from PC World, and I'd urge anyone considering, like our clients, to do their research. If you wanted business leasing, why on Earth would you start your research at PC World, or sign up via them? Give them a cut rather than dealing direct? For any business wanting quality of service - steer clear.

As for comparing a large company with that of a professional one, my word, you really do need to do your research. There are many tiny companies massively more professional than huge corporations.

Incidentally my company doesn't borrow, has funds and would never consider leasing equipment, as we keep PCs for many years, it would be literally money down the drain. Computers for us are a capital investment.