PC World Business Smartplan - spread the cost of IT

isofa

Dickie wrote: »

OK, I will bow down when you name me 4 companies. I can lease a laptop from as newhope suggests.

:beer:

I mentioned 3 in my previous posts (Jigsaw supply Macs and PCs), add Dell and there are 4. Many other manufacturers offer either business leasing or HP purchase contracts too.

I could just open a copy of one of my trade journals and list many more, but I've really got better things to do with my time.

You could also Google for PC leasing companies and sift through the hundreds of companies shown too... :rolleyes:

Dickie

I looked at their websites and they do not offer the same product.

That is why smartplan, sorry rentsmart, (quite rightly) say they are unique.

I am off.

Thanks for the welcome to the forums

superscaper

Dickie wrote: »

I looked at their websites and they do not offer the same product.

I should hope not, the other companies offer something better.

That is why smartplan, sorry rentsmart, (quite rightly) say they are unique.

I thought they were unique because despite searching I can't find one positive review.

I am off.

Thanks for the welcome to the forums

I am curious in why you'd be searching for instances of "smartplan" if you have no affiliation.

Dickie

I was thinking of getting one. Thats why

isofa

Dickie wrote: »

I was thinking of getting one. Thats why

Well you'd be mad to

Tell us all what you require and the budget, and we'll see what is available and come up hopefully with a better solution, which wouldn't be difficult considering the main one being discussed!

pressured_2

isofa wrote: »

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.

hi there... would love your advice, if you don't mind....

you would think that at the grand old age of 52 i should have known better... but when visiting pc world to check out laptops and cameras i was, shall we say, guided, to the plush business area, plied with complimentary refreshments and flattery and left having signed a smartplan agreement to the tune of £70 per month for 36 months .... i know, i know....well now i know, anyway

less than 24 hours later, once the flannel had worn off, i tried to cancel assuming i was protected by a cooling off period..... wrong, they told me the agreement was not covered by the consumer credit act and subsequently upped the direct debit to £83 to include insurance that i had not been advised about....

to cut a long story not too much shorter, i bit the bullet and resigned myself to the fact that it was my fault for acting on impulse and i had to see it as a VERY expensive lesson...then i came across your informed posts on a related subject and wondered if you know of any way i can legally and morally!! shed myself of this albatross???

if u have 5 mins to spare would really appreciate a yay or nay....

many thanks and regards

chunter

how long ago did you purchase this cover?

365drills

Three years ago I walked into PC world with my credit card to buy a Packard Bell PC and a HP Monitor.

I was told by the sales rep that leasing was better for my pocket. Better for my cash flow. Better for the company.

What I was TOLD and was is REAL LIFE looks totally different.

I feel mis sold. See if you agree....

OK the cost To Buy
Total price £679.97 + VAT £798.97

To rent using Smart Plan.
Total monthly payments £35.23 x 36 (Final £1268.28)

So is the Difference? £469.31 for leasing... - Answer WRONG

---

What actually happens is that you must pay insurance. (I found this out after)

My monthly repayments then went up to £43.12 with the insurance.

So the actual three years is 36 x £43.12 = £1552.32 total cost.

Does that make a Diffrerence of £753.35 ? Again.... WRONG.

Why?

Because the final cost to buy the equipment at the end of the lease is NOT One months rent at £43.12? Nope....

Its the "Market Value" of £150+VAT

Plus a £25 transfer fee + VAT.

So add the total cost £205.53 to pay at the end of the lease.

THE FINAL COST WAS £1757.64 which has left my pocket for a £798.97 machine.

YES THAT IS RIGHT! Nealy £1000 was the "cost" in the end....

Was I naive? Yes. Did I believe the shop sales? Yes. Have I learnt my lesson? Yes. Am I angry? Yes

Do I hate PC world. Yes. Do I hate Smart Plan. Yes.

DO I WANT TO SHOW OTHER PEOPLE THE REALITY.

YES

Richard Hazell
365Drills

John_Gray

The title to the original post, made nearly two years ago, was:

PC World Business Smartplan - spread the cost of IT

(my italics) and I suspect that it was derived from some of the plan literature. This appears to be exactly what has happened in your case, so they can't be castigated for inaccuracy.

That the amount you paid is grossly in excess of what you expected was a result of your not looking too closely into the finances of the lease.

Leasing is a method of spreading the cost of equipment over a period of time, thus improving your company's cash flow because you don't have to pay for everything up front. However it comes at a cost to the leasing firm which lends you the money over that period, and they pass on this cost to you, plus a profit of however much they think they can get away with.

They will have had to specify an APR somewhere on the costings, so that should have caused you to head for the hills prior to your purchase.

It will come as no comfort to you, but the APR of some of the short-term convenience or 'payday' loans can be as high as 2100%!

Fortunately the Romans had a phrase for this whole area: "Caveat emptor", which they would have changed in modern times to "Caveat PC Mundum"...

365drills

Yes I totally agree with you and in fact for all the reasons you point out above that is why I just swallowed the bitter pill and carried on paying the money over the three years.

In fact I called it a visual punishment to myself when I saw the money go out of the bank each month and a reminder of not to be so trusting.

I used the word trusting above rather than naive. I do not class myself as naive - I run a very successful diamond drilling company employing 14 people here in the UK
and we export our goods all over the world bringing revenue from Exports into the UK.

What I classed myself as - is trusting.

What I did that day three years ago was accept PC World with its powerful presence in the market could be trusted to lay the facts and allow me to make the call between two choices.
I assumed it didnt matter to PC World either way. I assumed they would get the profit on the sale of the equipment at £798 anyway - and their scheme to help business was set up to help.

The reason I placed all this trust into PC world was because I assumed they would not want to spoil their reputation and lose market share.
But what I found to be underhand was the missing parts of the jigsaw.

1) The compulsory insurance.
2) The final settlement cost which was actually stated by the saleman as "oh they practically give you the equipment at the end for a token one months rent of £35.23" and he went on "The thing is at the end of three years the equipment is junk. They cant sell it. Its worth nothing to them and its more hassle to collect and resell so its just a way to get a bit more from you".

As I sat in the comforting womb of PC world drinking my free coffee and sitting in the comfy chair All these things he was saying made logical sense.

Of course you quite rightly point out the benefits to my company of improving cashflow. Very noble but of course when we look over the three years and see that saving has cost £1000 (almost) then it doesnt look to great on paper.

I started out by stating that I had accepted my fate but there has to be a take away message here. For me each month I saw £43.12 visibly leave my bank and that on its own was a physical and painful reminder of my stupidity. For others reading this post your message has to be that when it comes to leasing and hire purchase the price difference is NOT the cost of the equipment at £798.97 versus the repayents of £35.23 x 36 (Final £1268.28). The take away message has to be that the financial story does not stop there... Once you sign that agreement you can expect more!


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