buying things on finance?

It's all down to affordability really. It doesn't sound like you can really afford a car (a semi-decent one anyway) - don't forget you need to pay for tax/insurance/petrol/service on top of the car itself.

I always by outright if I can, interest free credit is OK if you want to pay for it later on, but I prefer to pay up front for things if I can.
 
The Buy Now Pay in 6 months is something I'm very much considering.

I currently have my 2011 iMac & old car up for sale, so obviously once sold (easily in 6 months) i can pay off in one lump sum without any added interest right?
 
Since going from a 6 figure income to less than £2k a month, I've had to totally rethink my spending habits - whereas before I could afford to credit card tart (shifting balances from 0% card to a new one each period), I now have to consider the impact on my monthly disposable if I commit to buying something on finance. Unless it's 0%, I will almost always just save - being of the opinion "if I don't have it in my pocket, I can't afford it".
This has allowed us to maintain our excellent credit, despit such a huge change to our income. We still manage to buy what we need, just planned more carefully and less impulse purchases.
 
Wasn't it bad debts (and people defaulting) that caused the whole financial crisis?

If that isn't a good lesson about the folly of finance, well... I'm an Ostrich :p

Buying high-value stuff on credit card is still a good idea tho, as you get the nice Consumer Credit Act protections that you don't get with other payment methods.
 
My general rule with finance, is if I can't afford it save up, else I probably shouldn't have it!

These rules exclude the mortgage I have and any phone contracts. Cars however are not exempt, I save up and pay in full :)
 
depends what it is.

we have a sofa on finance, we moved out a few months ago and could not afford to buy everything outright so the sofa went on finance with 0 interest.

wouldnt do it on a car for instance though.
 
You say you earn £450 p/month. I don't know your current outgoings and presume you live at home. So take away any board money you have to pay to parents If you do pay any at all and save £200-250 p/month for 3 months and there you have it, £6-700 saved for upgrades.
 
I've bought a load of stuff on finance. Apart from my flat I've bought useless stuff like musical equipment to snowboards.

However it's all been 0% - that's key.

If I can get 0% I'll do it. I set up a standing order so that it pays off before the interest kicks in and keep the money in my offset mortgage. This means that while the money is mine it offsets my mortgage interest.

If the finance is anything but 0% I won't even entertain the idea.

Also a good idea, that's worked out well for me, is 0% with credit cards for 24 months or whatever. Admittedly I'm no longer doing this as I've managed to pretty much top out my credit rating and I've got enough money set aside (separate from my savings) that allows me to pay off lump sums (like car insurance) but it was good for a while.

I lack self control in some regards (I probably didn't need that new keyboard or snowboard!) but when it comes to actually paying things off I've managed to be more than disciplined enough and actually make it work in my favor.
 
I know this is an old thread but I found it via google, I've not long moved house and with Christmas coming up etc. I haven't got the cash to buy a Camera I'm looking at at the moment...

But the deal I could get on it is buy now pay in 9 months time with just a £29 settlement fee.

The Camera price is £819 with a voucher code which knocks £80 off. Then you can claim £80 cashback via Canon's winter cashback deal which runs until January 2017 making the price £659... (£688 with a £29 settlement fee) in total.

All other competitors price the camera at £819 meaning the second best deal would be £739.

So in that sense finance can actually save you money. Just thought that might be worth mentioning... still undecided as to whether I want to purchase on finance though as I always like to save up and buy things.
 
Finance is fine, as long as it's not a payday loan. I have used interest free, and even 'Creation' easy 10 before to fund new purchases where i don't fancy outlaying a grand or more in one go. It might cost a little more, but as long as you keep in control, it's useful. I don't miss the monthly payment that goes out, and it's paid off in 10 months.

I don't believe half of the people that have posted in this thread have never financed anything other than a car or a house. I bet most have a credit card (that they claim to pay off in full every month - but don't) It's all part of the 'high and mighty' and the 'holier than though' club ;)

I'll happily admit that i take advantage of finance but i stay in control of it and don't let myself get into too much debt with it.
 
No finance for me.

If I can't pay for it upfront, easily and without having to think about it impacting finances then I won't.

Then again I save considerably more than I spend as im a simple mind and pizza and wine is cheap..
 
I bought a Skylake processor, RAM and Mobo from Overclockers via Hitachi last year. I'd just bought a house and had zero savings so i decided I would rather pay £15 a month and have it straight away than save. Works for me.

(The only downside was I ordered all of the kit to get delivered to work so the missus wouldn't notice, the finance overwrote this and it got delivered home :eek:)
 
Buy it on credit card, balance transfer it for 0% deal on second one (obviously milk the 0% on purchases first).

I paid off my solar panels on it - £10k long term loan or £6k if I pay it off. I paid it off and balance transfer it. I owe £3k still but £30/month and I get back more money from the solar panels so free money whilst I don't haveit. Obviously want to pay it off asap when I get money.
 
Save up. By that point whatever it was you're saving up for will have dropped in price:D This is obviously for relatively 'small' items, such as computer components etc. For some things such as cars it's almost inevitable :(
 
No, you shouldn't get finance unless it will make you money.

In other words finance only for House Improvements, Wine, Cars (not a Ford Ka)

Save for it. It also has other benefits

1: You will enjoy it more
2: You will look after it more
 
Fenris said:
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.
Click to expand...

Wise words this. OP you should take heed of what is said here.
 
My cars on tick because well quite frankly whos isnt and so are my sofas because its 0% so why not.

Also have a CC with £5k limit which is solely used for spending while abroad
 
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