Buy now pay later schemes used to your favour?

fibernie

So, we're getting some new windows and doors. We've shopped around, and chosen the company we want to go with. We've saved up, and can pay the full amount (about £4000).
They have a buy now pay in a year scheme. Would it be a good idea to take them up on this and put the money in a high interest account? It's 'interest free' but they make their money from late payers, who then get a years worth of interest lumped on.
This is really a loan, which makes me feel uneasy - don't normally do loans. I've read these schemes can affect your credit rating, but since we're not going to move mortgage or need any credit in the year, it seems that's not too important.
Or is it? Would you go for it?

nephilim

do it, but rack up 11 months worth of interest on the money in a savings account, and in the 11th month (1 month before your due date to start paying), pay them in full. it gives you a chance to get some money, and you get your curtains at the price you negotiated for!

fibernie

Thanks. Has anyone else done this?

taff007

Yes I've done it a few times, and generally it makes sense. Depending on your current credit record I wouldn't have thought it would make much of an impact on any future borrowing requirements. In the past I've set a reminder on my computers calendar to remind me to pay the loan off. And it does take a bit of discipline not to use the money on something else.

Before you commit it could be worth asking if they would drop the price if you paid 'cash'. They may offer you a discount over and above what you could get in interest from a bank. I'm sure they are priced to allow a bit of haggling.

jonesMUFCforever

Just make sure there is no administration fee at the end when you come to pay it off before the interest kicks in.

nephilim

sometimes (depending on the company), there will be a maximum of a £25 admin charge, but thats nothing compared to what you have hashed out.

make sure you pay before the interest kicks in though, I cant stress that enough!

mpg

just tell them you had another quote at £3200 can they match it they want your work more than you want theirs.

just to put it in context I`m mates with a local manfacturer of double glazing so got trade rates was quoted £2700 by two other firms and got it done trade at £1400 so there is always room for movement

silvercar

I've done it with Sharps bedrooms, they were offering a £500 discount if we paid for it by a loan from GE Money. They showed us glossy brochures about paying off extra when you can and reducing your interest. It cost us £80 set up fee, £30 in interest (we paid it off over 3 months to be subtle) and so saved £390.

It could look good on your credit history if you pay off loans on time.