Impulse buy - Hitachi Capital

[Syphadeus]

Hi everybody, I've posted this here because I'm not sure where else to post it.

Just wondering if anyone has purchased something expensive from OCuk and used the Hitachi thing payment option. I have to admit, I am intrigued by it and am considering using it to buy a new graphics card for my system.

From what I understand on the deferred payment plan for e.g. buy now, pay in 12 months. I buy it like normal, pay 10% upfront and then don't have to pay anything for a year, at which point I pay in instalments with interest. If I have paid the full amount within the year before the payments are due to begin, I pay no interest, but rather an arrangement fee of £29 squiddles.

That sounds fairly decent to me, even if it's an expensive item, I could easily budget to pay it off in a year, and 30 quid as a fee for the credit doesn't seem bad. Does anyone have any experiences with this that they can talk about? Is it easy (as in, the method used) to make payments etc?

 

[Indigo]

Well depending on how much your card is going to be £29 is still going to be a high percentage of it. I'd be treating the charge in exactly the same way you would interest. Even if it's a £300 card it's adding pretty much 10% on.

Do you need the card now or do you just want it now? Your better off saving for it and saving some money.

 

[fiveub]

If you pay it all before 12 months you will not be charged any interest.

 

[Syphadeus]

Well depending on how much your card is going to be £29 is still going to be a high percentage of it. I'd be treating the charge in exactly the same way you would interest. Even if it's a £300 card it's adding pretty much 10% on.

Do you need the card now or do you just want it now? Your better off saving for it and saving some money.

Of course, you're right, it is better to save the money and have the money there in full before buying it. It is an impulsive sort of thing. I am good with my money and could afford to save, but am perhaps a bit impatient.

This is only a hypothetical scenario at present anyway. I am wary of any form of credit really but also know that it's not all bad as long as you know what you're getting into, which is why I'm looking for opinions / experiences of people who have already used this option. I've looked at the Hitachi capital website and it seems fairly legit and open in terms of available information. I would sooner trust someone who has used it though over the word of the company itself or those with a vested interest in me taking the credit lol

 

[HEADRAT]

I do this on "one purchase a year", I always make sure I settle before the APR kicks in

 

[Syphadeus]

Right then HEADRAT excellent, since that is what I would plan to do, how do you go about making payments to your balance? Do you do it online? Can you choose how much to pay off and the frequency at which you make payments toward your balance, say £100 one month, £90 the next etc?

 

[fiveub]

With Hitachi Capital as far as I am aware it has to be in one lump sum payment. So you have to pay the full amount at the end of the agreed time.

 

[HEADRAT]

Right then HEADRAT excellent

There are no payments beyond the initial sum, you just settle the balance a the end of the 12 months, unless you want to pay stupid APR

 

[Syphadeus]

Ah I see, that makes more sense. So you can't pay it early, you literally settle the balance in 12 months from the date of the credit being issued else you pay in instalments. Gotcha. Thanks for the information guys, very informative!