How much crap do you have on hire purchase?

b0rn2sk8 said:
I’d say PCP worse than HP because most people don’t have a plan to pay off the balloon payment at the end of the term.
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Absolutely, its a trap for 95% of people. Literally keeping people poor. Not saying this is @tom_e situation, just a generalisation.
 
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200sols said:
Absolutely, its a trap for 95% of people. Literally keeping people poor. Not saying this is @tom_e situation, just a generalisation.
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Can't disagree with that especially when you've got people paying LOL% APR on second hand cars using it as well.

For me it was a cost effective way into a nice new car. Exit plan is already sat earning 5% so pointless handing it over while it's costing me nothing (extra) to finance it.
 
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If you cannot afford to buy it outright, don't buy it.

That has always been my motto.

Only things I would consider finance for is a car and a house. I only have my mortgage currently. No other finance for me.
 
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I've bought sofa set and wardrobes on 0% before when I couldn't afford the total cost at the time of purchase but could easily afford the monthly payment. Yes I could have saved the same every month and bought them outright at the end of 2 or 3 years but it was preferable to space them out so we weren't sat on a broken corner sofa for another few years.

Cars I always think of as cost per month to own, worked out by the total cost of the car minus resale value (if any), adding cost of tax, services and any extra repairs then dividing by how long you keep it. You can always get out of HP or PCP but you won't be able to keep the same quality and will have to either have a an equity balance or pay a bit to pay off finance. I think this approach is better because you can worry about % interest and over or under paying on list prices but the end of the day you're unlikely to keep a car forever. Not to say there's no good or bad deals and you're always going to pay more for a posher car.
 
0% Sofa's for 4 years
0% on a TV that's on a buy now and pay in 12 months, which I'll pay off
0% on iPhone

I like deals where I use their money and all ways settle in full before the crazy APR kicks in :)

I allow myself one 'big ticket' item per year, last year was my TV, I will get my next 'big ticket' item once I've paid that off.
 
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Ace Modder said:
If you cannot afford to buy it outright, don't buy it.

That has always been my motto.

Only things I would consider finance for is a car and a house. I only have my mortgage currently. No other finance for me.
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Depends though if it’s an essential item. Let’s say you don’t have the cash and your washing machine packs in. You can afford the £30 p/m for 12 months and it won’t be an issue to pay but you simply don’t have the £360 sitting there to buy it then happy days on the interest free.

If it’s just for a guitar or some designer pair of jeans then it’s defo a no no.
 
Retirement is in hire purchase now for me.

Decided to switch to interest only on the mortgage and throw everything else into pensions, will pay off the mortgage balance at retirement.

Hopefully.
 
We put our kitchen purchase on 0% credit cards. I have enough in savings (earning interest) to pay it off when the deal ends though.

No other credit other than mortgage. I do drive a 15 year old car though and not a new one.
 
Just about everything is bought on credit, credit card for monthly fuel and food and paid off in full each month, earns points/cash back depending on the card.
Almost all purchases above £100 are bought using 0% credit, either direct from the seller or through PayPal credit where available, minimum 4 months, sometimes 12 months.
Some large purchases I'll open a 0% transfer credit card and roll the debt over for a few years, last big purchase like this was solar panels.
My money stays in savings, I'll take the free loans thanks
 
Mortgage that's it. But I do use the PayPal pay in 3 quite a bit if that counts. I have a few credit cards but are paid off in full every month (use them for points and cashback etc...). My credit limit is ridiculous but I don't use it as I'm sensible.
 
Back a long time ago when I had no money I used to have a TV and surround sound system from Radio Rentals. Think I had a washing machine too.

Nowadays I have nowt on tick, except for a mortgage. Cars I usually trade in, and pay the rest out of savings.

I've nothing against using credit cards to buy stuff, you get better protection anyway. I always pay off in full, so there's no interest charged, and you defer paying for things by a month.
If buying sofa/bed and there's a 0% offer, I'd probably use it and just pay it off before any interest applies. As long as you don't spend yourself into debt, it's the smart thing to do, leave your money earning interest if they will offer you a year or more without paying.
 
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I'll happily take 0% when it's available, although a lot of places are now offering it for 3-4 months and I just don't think it's worth the hassle.

At the end of the day, I'll always pick the option that's eventually cheapest for me.

Even 2% I'd take if it was a sufficiently big purchase and for a few years.
 
Just a house I guess :p

Not a fan of monzo or other things like that. To me it feels like living beyond your means. Save up and buy is better and less risky. But I appreciate everyone is different however.
 
Yup, 0% is essentially free interest on your money for however long you have it for.

For those not using CC, it's extra protection for anything over £100 as well, so long as you pay it off straight away it's essentially a free guarantee on your money if the company goes bust or messes you about.

So to double down contradict my first comment, HP isn't daft at all. If you use it right and don't end up paying more than it would to cost outright then it can actually be beneficial.
 
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