0% interest over 4 years help

phoenixstorm1988

need some info and help as i can't find it on the littlewoods website
im looking at. buying a new bed and they are offering 0% for 4 years 

what i want to know is they have 0% intrest on 1 year 2 years and 4 years i cant manage atm to do two years 
if i was to take the 4 years and pay it off in three years lets say will they charge me for early payment as iv not done the full 4 years

thank you for the help in advance

pramsay13

Not sure, you'll have to check the terms and conditions.
If there was a penalty you would just pay back as normal and overpay into a separate savings account and use that to pay off year 4.

photome

I don’t know the answer, but what would the benefit be for paying off an interest free loan early

steampowered

Personally, I would never buy something like a bed on 0% finance.

0% finance deals encourage over spending. You still have to pay the full amount. And you are still paying for the finance - the costs of the finance are included in the price you pay for the bed.

If you don't have the cash available, you can't afford the bed. Save up, then buy a bed in cash for a better price. Simpler and cheaper.

photome

steampowered said:

Personally, I would never buy something like a bed on 0% finance.

0% finance deals encourage over spending. You still have to pay the full amount. And you are still paying for the finance - the costs of the finance are included in the price you pay for the bed.

If you don't have the cash available, you can't afford the bed. Save up, then buy a bed in cash for a better price. Simpler and cheaper.

 I bought a vi spring bed from John Lewis, I could afford to pay for it outright, but they offered 12 months interest free. The price was the same regardless  of how I paid for it, so why wouldn’t I pay over 12 months.

davidmcn

photome said:

steampowered said:

Personally, I would never buy something like a bed on 0% finance.

0% finance deals encourage over spending. You still have to pay the full amount. And you are still paying for the finance - the costs of the finance are included in the price you pay for the bed.

If you don't have the cash available, you can't afford the bed. Save up, then buy a bed in cash for a better price. Simpler and cheaper.

 I bought a vi spring bed from John Lewis, I could afford to pay for it outright, but they offered 12 months interest free. The price was the same regardless  of how I paid for it, so why wouldn’t I pay over 12 months.

If it's "interest-free" then the price has to be the same regardless of how you pay for it, otherwise they can't call it interest free. But obviously somebody has to pay for the finance, it just means they've built the cost of the finance into the price.

If you're happy with the price then fair enough, but there may be something equivalent available elsewhere at a cheaper price from somebody who doesn't offer the shiny 0% deals.

shaun_from_Africa

steampowered said:

If you don't have the cash available, you can't afford the bed. Save up, then buy a bed in cash for a better price. Simpler and cheaper.

Simpler and possibly cheaper unless of course you need a new bed and don't just want a new bed.
Some people may not be able to afford to pay cash for costly items and an interest free purchase may be the only way to get what they need.

There is also the added bonus that S75 protection would probably apply so in the event of a problem in the future and the retailer not helping or having gone out of business, there may be a way to get a resolution.

stragglebod

Remember to check what happens if you miss a payment; these schemes can get very expensive very quickly if you don't keep to the repayment schedule.

steampowered

I've just looked on the Littlewoods website. There are plenty of beds costing £200-300, but only the beds costing more than £700 have interest free finance. 

Which illustrates my point really. These deals are just encouraging people to overspend on things they can't afford. Sorry, but if you don't have £700 of savings, you can't afford a £700 bed. 

shaun_from_Africa

steampowered said:

Which illustrates my point really. These deals are just encouraging people to overspend on things they can't afford. Sorry, but if you don't have £700 of savings, you can't afford a £700 bed. 

Maybe the OP wanted something that would last longer than a few years so opted for a better quality one.
the old saying "buy cheap, buy twice" is often true,

steampowered said:

I've just looked on the Littlewoods website. There are plenty of beds costing £200-300, but only the beds costing more than £700 have interest free finance. 

Could I suggest that you have another look. 
20 weeks interest free is available on everything and 52 weeks interest free is available on anything costing over £250

Kattekwaad

photome said:

..... so why wouldn’t I pay over 12 months.

Because you don't know what is around the corner and in this current climate of armageddon that should be your first thought.

We live in very financially dangerous times.   What happens if interest rates turn negative?