Loan for Conservatory - double indemnity?!

Arfa__

Whilst in the process of getting quotes for a conservatory, one company suggested I use their own finance... They reckoned that by doing this, even if it was only for a small chunk of the cost, as part of the loan agreement I'd get 'double indemnity' to back up their guarantee. Seemed to think the credit company would also cover me, should something go wrong. Didn't quite get it at the time.

So what's he on about? Is it sales bullshyte or is there really some extra level of guarantee?

Emmzi

I can only think of the sales protection that comes standard with all credit cards

shortchanged_2

If you are talking about section 75 then it also covers point of sale loans. So yes the finance company would be equally liable.

CLAPTON

Arfa__ wrote: »

Whilst in the process of getting quotes for a conservatory, one company suggested I use their own finance... They reckoned that by doing this, even if it was only for a small chunk of the cost, as part of the loan agreement I'd get 'double indemnity' to back up their guarantee. Seemed to think the credit company would also cover me, should something go wrong. Didn't quite get it at the time.

So what's he on about? Is it sales bullshyte or is there really some extra level of guarantee?

In general a finance company can be hled jointly responsible for the product or service bought using credit .... which is why one is often adviced to pay for holidays using a credit card


however, using their finance will probably be very very expensive so check out he APR very carefully

better if possible to use a credit card and then pay the balance in full.

Arfa__

Unfortunately I won't be able to pay for the full cost straight away, so clearing a balance in full isn't going to be an option. So I will be needed to loan some.

The finance the company offered was 8.6%, even for a small amount of £3K, but had a minimum term of 5 years (and was very encouraging to go for 10-15 years, god forbid!). But did say overpayment was an option to clear it sooner.

shortchanged_2

Arfa__ wrote: »

Unfortunately I won't be able to pay for the full cost straight away, so clearing a balance in full isn't going to be an option. So I will be needed to loan some.

The finance the company offered was 8.6%, even for a small amount of £3K, but had a minimum term of 5 years (and was very encouraging to go for 10-15 years, god forbid!). But did say overpayment was an option to clear it sooner.

To be fair that sounds like a very good APR if that's what it is. You'd be very lucky to get any personal loan for £3000 with an APR of 13.9% or less these days.

Be careful though they may be spouting some dodgily worked out interest rate, so thoroughly check out the paperwork before commencing any agreement.

jamesperrett

Arfa__ wrote: »

But did say overpayment was an option to clear it sooner.

Check for any early repayment charges - sometimes these can work out very expensive.

James.

ILW

Sounds like they have quoted flat rate not APR.

Also I hope you are getting to let them wait a bit and tell them you are getting loads of other quotes. Watch their price come down.

Arfa__

They already admitted, their sales policy is to only give the super cheap price once. Since I said I wouldn't be making a decision at the time and will pop down to the showroom, he only hinted at what the super low price would be. So its obvious when I head to the showroom to check out their stuff, they'll really pile on the hard sell, give the super low price and insist we decide there and then...

Not how I like to work, but so long as I'm fully clued up beforehand, I may be able to get a good deal.

shortchanged_2

Don't tell me this company was one of the it will cost you £25,000 for this conservatory but we have a special deal if you sign today for £8,000. If it was I would say don't touch them with a barge pole.

Arfa__

Hehehe, I know the sort you're on about, had some muppets trying to sell us some Protectacoat rendering for the house like that.

This lot seem to be using similar tactics, but the first price was £11K, then threw in a window for free, then hinted he could maybe make it around £10K, but could only offer that £10K price once, i.e. when we go to the showroom. So not daft figures really, did seem to know what he on about and made some decent suggestions regarding spec/design. Claimed they can do better prices as they were the factory making the windows, compared to my last two quotes who both sell the exact same product (same brochure, different branding!)

Can't decide what to make of them. On one hand they seem, pretty good, decent price etc, but these sales tactics and pushing of finance do put me off.