Buy Now, Pay Later loans questions.

SarahJane1986

Ello,

I'm really sorry if this is in the wrong place, wasn't sure where to put it!

Anyway, I'm looking to buy a half decent digital piano from Dawsons and I was about to embark on some serious saving...but I need the piano pretty quick (have exams coming up!)

Anyway at Dawsons they have a Buy Now, Pay Later deal where you take the item, then in 12 months time you pay for the item...no interest. If you don't pay, you go onto the 48 month pay back thing with lots of interest to pay. I will pay it off in 12 months but I was wondering if there were any catches with this?? I don't understand how they would make money off me if I paid it back on time. Any ideas?

Here's a link to the buy now pay later deal -
http://www.dawsons.co.uk/acatalog/Finance_Information.html

I've never done this before so I'm being cautious

Thanks for your help.

BugsyBrowne

SarahJane1986 wrote: »

Ello,

I'm really sorry if this is in the wrong place, wasn't sure where to put it!

Anyway, I'm looking to buy a half decent digital piano from Dawsons and I was about to embark on some serious saving...but I need the piano pretty quick (have exams coming up!)

Anyway at Dawsons they have a Buy Now, Pay Later deal where you take the item, then in 12 months time you pay for the item...no interest. If you don't pay, you go onto the 48 month pay back thing with lots of interest to pay. I will pay it off in 12 months but I was wondering if there were any catches with this?? I don't understand how they would make money off me if I paid it back on time. Any ideas?

Here's a link to the buy now pay later deal -
http://www.dawsons.co.uk/acatalog/Finance_Information.html

I've never done this before so I'm being cautious

Thanks for your help.

They have earned money off you buying the item,just make sure you pay this before your 12 months is up if not you will be paying twice as much for your item.

Also don't expect a reminder letter through your door saying you only have a certain period left to pay it as they won't do this.
Buy now pay later is a very good way to buy as long as you have the money to pay before your 0% period is up.

chalkie99

They rely on your circumstances changing during the course of the year and you being unable to make the payment.

They also rely on you leaving the payment to the last minute and finding it does not clear on their system so trapping you into high interest payments.

If you go for it, put money aside each month and then pay after 11 months and make sure the payment has been accepted and cleared well before the actual due date.

SarahJane1986

star-fire wrote: »

They have earned money off you buying the item,just make sure you pay this before your 12 months is up if not you will be paying twice as much for your item.

Also don't expect a reminder letter through your door saying you only have a certain period left to pay it as they won't do this.
Buy now pay later is a very good way to buy as long as you have the money to pay before your 0% period is up.

Thank you for your reply. It's looking good to me. I'm going to give the money I save to my Dad just incase I weaken and spend the lot!

SarahJane1986

chalkie99 wrote: »

They rely on your circumstances changing during the course of the year and you being unable to make the payment.

They also rely on you leaving the payment to the last minute and finding it does not clear on their system so trapping you into high interest payments.

If you go for it, put money aside each month and then pay after 11 months and make sure the payment has been accepted and cleared well before the actual due date.

I'm planning to save the money in around 3-4 months. Can you pay early?? Can't find anything on the site, might go in and talk to them. I hope you don't get charged for paying early

Thanks for the reply

paulmcerlean

You can pay anytime before the 12 months.

Peelerfart

paulmcerlean wrote: »

You can pay anytime before the 12 months.

But why not stick the money in the best account you can find and earn a bit of interest beore handing over your cash ?

nomoneytoday

Peelerfart wrote: »

But why not stick the money in the best account you can find and earn a bit of interest beore handing over your cash ?

How much interest would you earn on a couple of thousand over a few months?

BugsyBrowne

nomoneytoday wrote: »

How much interest would you earn on a couple of thousand over a few months?

Yeah I can't understand when people say that either stick it in a high savings account to earn about £3

Peelerfart

star-fire wrote: »

Yeah I can't understand when people say that either stick it in a high savings account to earn about £3

Oh look there's £3 on the ground there.

You know I can't understand it when people don't pick it up.

SarahJane1986

star-fire wrote: »

Yeah I can't understand when people say that either stick it in a high savings account to earn about £3

Yeah that plus I might then forget to take it out and pay for the item As soon as I have the money I'm paying for it! :T