buying things on finance?

FatFishMonster

FatFishMonster

FatFishMonster

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Devon
just wondering
what are peoples experiences with buying things on finance? couple of my friends have cars on finance

for someone like me on an apprentice wage, (450 a month)
i could afford paying things back at say £15 a month for say a new pc or games console, but i can never afford to buy things out right.

(im not getting anything on finance, im just wondering what peoples experiences are)
 
I bought a pre-built system on here and paid with Finance from Hitachi Capital. The cost was £1200 buy now pay in 6 months, i paid it all off in one go last month before payments were due to start in May. It worked out well for me as it gave me a couple of months to save up and pay off the balance, I never once thought about it starting the monthly repayments as the interest is horrible!
 
Personally I try to avoid it wherever possible. I did take out finance on a new car a few years ago but decided a year later to pay it off and saved over £2k on the interest. I hadn't wanted to touch my savings at the time but if I had paid it in full there and then I would've accrued that money back over the year anyway.

It's definitely something you need to really look into and work out before opting into it. I didn't fully consider how much I could save each month to gain back the money I'd used but I've certainly learnt from that now.

My company have also recently told me that I would be eligible for a loan with them should I ever need it and I could be flexible with repayments.
 
pingwing said:
Don't, learn to save and build up the anticipation instead, other wise you end up spending more for the same product...
Click to expand...

yeah, just from browsing things on the net the amount you pay in total is around 150~ more than buying outright

i like to think im good at saving when i put my mind to it, the only reason i would consider finance is because of how low my wage is at the moment.

a while ago i was tempted to get a complete system upgrade off here on finance as well......im in need of it. would just take me a LONG time to save up 700~ odd for it, i then decided against it.
 
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Everyone here will say don t do it... I can tell you now.

But i will say most of these people almost anyone with a new car or House will be financing/mortgaging it or have the bank of mum and dad to take a loan from.

Yes you will end up paying way way over the odds for the product you buy but i say go for it as long as you can pay it back and are sensible.

On IT stuff or a Console you are probably looking at paying back at least double over the finance period. Is that worth it to you ? You decide.
 
The only things you should buy on finance are things that you expect to appreciate in value. A house, a business, a non liberal-arts uni degree, work equipment, and so forth.
 
You are 19 and earning less than minimum wage. Finance is something you shouldn't even be considering.

Finance is great, assuming you are clever about it, however it can be a terrible trap for the unprepared.

If you have a stable income and don't mind paying the interest, it allows you to skip the saving part of getting something more expensive than you can afford right now.
 
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The way to do it is credit card with 6 month no interest on purchases, and then after 5 months if you cannot pay it all off balance transfer for 20months 0% interest, except for 3% fee..

However 25 months 3% fee only? That's below inflation, technically you save money.
 
I've thought about it but always end up staying away from it. If its something that I really need Id check with Family to see if I can borrow it instead (Like a repair)
 
Had finance on a couple of things excluding mortgage. Bought my 5d2 on 6 months credit along with my sofa and chair from dfs 3yr interest free. For the camera I saw out the 6months but for the sofa I paid it all off after 6months as I didn't want the constant amount coming out my account plus I had the outstanding balance in another account. It was just easier to get it on credit when I bought my house. Generally I don't use credit unless I have to.
 
I've got my rig on finance from hitachi through OC. Ended up paying about 25% more than the upfront cost but for me it meant I could access the system and I use it as my primary media centre ( no telly ) and wanted it to be reasonably futureproof. I am in the final year now and am considering an early repayment to clear the loan 5 months early ( 3 y loan )

One of the reasons I did it was I am wanting to get a mortgage in the next 12 months and wanted to have a good credit history. I credit check peaople all the time in my work role so I knew what was needed. The mres just got a tesco credit card. Even though I pay c tax and energy I have her names on both to get her rating up as well. Also been on voters roll at all props I've lived at for the last five years with no gaps.

If you can handle the high pays I would say a a Ccard is good for a long interest free loan ( tesco 16 months 0% on purchases ) . Having said that I have now built a substantial pot through my sharesave scheme in work and should have annual pay outs from 2014 onwards and this will bankroll any largish purchases from now on.
 
The only things I would get finance on are a mortgage and a car. Anything else, I'll only buy if I have the money.

I wouldn't get into debt over a computer or console.
 
If you fully understand the terms of the finance and know for certain you'll be able to pay it back, then I'd go for it if you think it's worth the interest. That being said, with relatively small amount (<£1k), a credit card wit 0% interest would be my choice.
 
I'd say avoid it - if you can afford it hen save for it - it's safer that way & leaves no chance of falling into debt.
 
I like to buy things outright but I used finance to.

If you shop around it can be 0 percent interest or very low, I bought my bike on finance. 18 months of around 35 ish instead of 750 or so upfront was much easier.

Also bought a 670 on finance from ocuk, it's about 8 quid a month. I don't even notice it it's that low an amount.

It's when you do it for to many items that it overshoots your income is a problem, just have to be realistic with what you can do.
 
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