Opportunity at work

AP007

03jatkin wrote: »

Rather than spending £1800 on furniture you can put the money in an isa and earn interest and just pay a minimum amount each month, it's what I did when we bought ours.

But what if you don't have £1800 to begin with? That's the point of having interest free for 4 years etc so it makes people think and ok its true that you have nothing more to pay than the ticket price which can lead to buying a more expensive piece of furniture etc

03jatkin

AP007 wrote: »

But what if you don't have £1800 to begin with? That's the point of having interest free for 4 years etc so it makes people think and ok its true that you have nothing more to pay than the ticket price which can lead to buying a more expensive piece of furniture etc

Surely you could think the same about a loan?

AP007

03jatkin wrote: »

Surely you could think the same about a loan?

a loan has interest so not the same at all

harrys_dad

03jatkin wrote: »

J free credit is great it means you can put the money in an isa instead

Except that "free credit" is not free. It costs the store owner money, and hence puts prices up. It also encourages people to spend more than they can afford. There are plenty of posts on the Debt-Free Wannabe board from people being pursued by debt collection agencies because they cannot keep up their payments on an over priced, poorly made sofa.

03jatkin

True an argument could be made to say by doing free credit if it increases a business's buying power massively it could help to achieve lower prices?

AP007

03jatkin wrote: »

True an argument could be made to say by doing free credit if it increases a business's buying power massively it could help to achieve lower prices?

How does free credit increase the buying power? The item is only classed as PAID when the company have received the final payment. If this takes 4 years its just like having an item say at the jewellers on deposit.

And lower prices would only be achieved if all sofas, furniture etc was ordered in bulk and we all know that at most of these companies on the sofas they are not even made till the order is in at the shop

Dogger69

AP007 wrote: »

How does free credit increase the buying power? The item is only classed as PAID when the company have received the final payment. If this takes 4 years its just like having an item say at the jewellers on deposit.

And lower prices would only be achieved if all sofas, furniture etc was ordered in bulk and we all know that at most of these companies on the sofas they are not even made till the order is in at the shop

It doesn't work like that. The finance company pay the retailer immediately - the buyer then repays the finance co.

oldgrumpygit

03jatkin wrote: »

Only in smiles

If I get a promotion ill buy you all dinner though, lol

Typical sales technique

Promise something you can't deliver :cool:

AP007

Dogger69 wrote: »

It doesn't work like that. The finance company pay the retailer immediately - the buyer then repays the finance co.

and if the customer wont pay or cant pay the finance company will soon stop their relationship with the stores in question

Dogger69

AP007 wrote: »

and if the customer wont pay or cant pay the finance company will soon stop their relationship with the stores in question

No, they will add charges to the debt, and eventually sell the debt on to a collection agency. Remember interest free credit has been about for many years, the stores and the lenders are both winners from such an offering.