Ao vs Paypal Credit

Dekiany

Hey guys, I am thinking of buying a tv on finance through Ao's finance or Paypal credit.

The TV is £800

If I buy it from Ao's its a set monthly payment of £40 for 24 months (20% apr) so it ends up being £940

But if I buy it from paypal credit they is not a set monthly payment in plan. The APR is 17.9% so how much would I pay in total if im thinking of paying £40 a month till its paid off?
Also to add with paypal I will get the first 4 months at 0%

Im pretty sure this is pretty simple that paypal is cheaper and im just over thinking it. But what would be the way to work this out?

Thanks guys

[Deleted User]

Use a loan calculator - input the amount, the duration and the rate, and you'll get your answer.

jonesMUFCforever

Why not get a 0% credit card?

Dekiany

Deleted_User wrote: »

Use a loan calculator - input the amount, the duration and the rate, and you'll get your answer.

I did that but it confused me.. As the Ao is 20% APR so its 20% per annual right?
So why is the AO finance only £160 extra for the two years?

jonesMUFCforever wrote: »

Why not get a 0% credit card?

Doesnt this reduce your credit score and dont you need good score to do it?

[Deleted User]

You're getting it completely wrong.

APR is charged on the daily balance, which will decline. You don't grab a chunk of it up front on the whole balance and slap it on top.

ratrace

Why not buy a used tv from gumtree on the cheap we bought a smart tv 40" from gumtree for a stupidly cheap price

Dont get in to debt when you dont have to especially for a telly

[Deleted User]

Dekiany wrote: »

Doesnt this reduce your credit score and dont you need good score to do it?

You needs a decent credit history. You don't have a credit score - lenders will use the data on your file to make decisions, as well as other information.

jonesMUFCforever

You will need a decent credit history to get any kind of finance.
If this is an issue start saving now and buy it for £400 in the January sales.

Gunther_Golf

A 60 second look at one website tells me curry's are doing a 49" JVC TV for under £270. Spend ten mins shopping about online and you will probably find one of that screen size even cheaper.

£800 for a TV these days if your paying cash is plain mental - To pay interest on it is criminal!

DCFC79

Saved up for 1 unless your that desperate for 1. You can pay much less and still get a decent TV.

nirajn123

Some good advice here - but I am kind of APR buff and couldn't resist bit of a challenge. I once gave BettaLiving chap make a run for it by throwing numbers at him when he tried to flog one of his bathroom by way of a finance deal! - sorry I digress..

In layman's term - AO cost of loan comes to £160, because as you pay off your loan instalments you effectively only have 1/2 the loan for the whole 24 months, as it starts at £800 but gets to 0 - so £400 borrowed for 2 years at 20% = £160.

With PayPal - if you get 0% for first four months but keep paying £40/month during that time, you are effectively only borrowing £640 for reminder of the term - which according to my calculation should just be 18 months because of lower interest cost (so 22 months altogether) - so you will pay about £86 in interest with Paypal. [Calculated as above example £320 (half the amount) x 1.5 yrs x 18%]

Hope it makes sense. This is just my calculations and not an advice, please do your own calculations before you decide.

I agree with others though - saving before you buy an on sale items is what I would do too.