Buy now, pay in 9 months time! - Questions.

BoomAM · 20 Mar 2008 at 15:00

Hi.
I was just browsing around some sites, and have seen some things advertised as buy now, pay in 12, but pay in 9 and pay only the initial cost.
2 things, is that the norm?
And how exactely does it all work? Am i given a bank account number to pay into or something?

Just curious really.

.

Indy500 · 20 Mar 2008 at 15:03

The catch is there's an arrangement fee, and you also need to pay a deposit of about 10%. Also, the interest can be staggeringly high if you don't pay within the specified period.

BoomAM · 20 Mar 2008 at 15:24

sr4470 said:
The catch is there's an arrangement fee, and you also need to pay a deposit of about 10%. Also, the interest can be staggeringly high if you don't pay within the specified period.

So from what ive gathered, the 'hidden' costs are:
Delivery
Deposit
Admin Charges

And then if its not payed off in the 9 of the specifyed 12-18 months, then the interest is very high?

Indy500 · 20 Mar 2008 at 15:26

BoomAM said:
So from what ive gathered, the 'hidden' costs are:
Delivery
Deposit
Admin Charges

And then if its not payed off in the 9 of the specifyed 12-18 months, then the interest is very high?

Yup, usually about 28% APR.

Bear · 20 Mar 2008 at 15:37

You will usually have to pay interest on the whole time period if you dont pay it off in the 9 or 12 months, so you will pay interest on the initial interest free 9 to 12 months on top of the rest of the outsanding time. Ive done it before but dont remember having to pay an admin fee but it was a long time ago so I may have just forgotten about it. Just make sure you pay it off in the interest free period.

LordSplodge · 20 Mar 2008 at 15:39

Just don't miss the deadline or it's 29% APR and you'll get ass raped.

jaybd · 20 Mar 2008 at 17:01

i offer buy now pay later in my shop, if you take 12 or 9 months you can pay by dd to the finance company an amount to clear by the period if you pay earlier than the buy now period they do a charge but if you pay the last instalment just prior to the end of the interest free credit period you only pay the shop price with no interest and no admin charges

Bear · 20 Mar 2008 at 17:33

jaybd said:
i offer buy now pay later in my shop, if you take 12 or 9 months you can pay by dd to the finance company an amount to clear by the period if you pay earlier than the buy now period they do a charge but if you pay the last instalment just prior to the end of the interest free credit period you only pay the shop price with no interest and no admin charges

Thats why I didnt notice any admin charge then, as thats what happened when I last did a buy now pay later jobbie.