Details about finance??

xRev

New member
Hey guys, I'm looking to purchase a PC that will allow me to do basic gaming and streaming to a smaller audience.
I currently work to get my money and have no expenses but also attend education along side meaning i get little money.
I decided to look into the finance section and was wondering exactly how it works (in simple terms Please)
how many payments do you have to make before you receive the PC you have ordered?

Thanks for the advice,

Rev.
 

Rakk

The Awesome
Moderator
The only waiting you need to do will be the same as anyone else when they order a PC, so for example it currently reckons 8-10 working days for a desktop PC from when you order, is the same whether you pay it all straight away or use finance.
All the rules and explanations (and an example tool) are set out here: https://www.pcspecialist.co.uk/finance/.
The important bits are:
Be 18 years of age or older.
Be in permanent paid employment (over 16 hours per week), retired and receiving a pension or self-employed.
Be a UK resident (minimum 12 months) and intend to remain resident in the UK.
Be able to provide acceptable proof of address and proof of signature.
Purchase the product for consumer use and not business use (business finance is available).
Edit: you will also need a good enough credit score: what this is I just don't know, each finance company has their own way of working these things out.
 
Last edited:

Oussebon

Multiverse Poster
It's worth noting too that if you can pay the finance off within the first year, you do not pay interest. There's only a fairly small settlement fee.

The finance calculator on the page Rakk linked shows how that works pretty clearly.

For example, you buy a PC worth £1000. The monthly payments are fixed, so you'd pay £27.92 per month (assuming you did a 1% deposit). But if you were actually setting aside another ~£70 per month yourself, keeping that untouched in your bank account, you could then pay off the remainder after 11 months and have only paid £1029 in total. (£1000 for the computer + a £29 settlement fee).

If you let the finance run beyond 12 months you are looking at the normal 4 year terms, and you'd end up paying £1350 for the PC (£1000 for the PC, around £350 in interest). You can't pay off after e.g. 31 months to dodge some of the interest - it's either within 12 months with no interest, or all of the interest.

So it is worth giving some thought as to how much you can realistically afford to set aside each month, in case it lets you pay off within 12 months, avoiding the interest and saving you cash in the long run. :)
 
Last edited:

Tony1044

Prolific Poster
It's worth noting too that if you can pay the finance off within the first year, you do not pay interest. There's only a fairly small settlement fee.

The finance calculator on the page Rakk linked shows how that works pretty clearly.

For example, you buy a PC worth £1000. The monthly payments are fixed, so you'd pay £27.92 per month (assuming you did a 1% deposit). But if you were actually setting aside another ~£70 per month yourself, keeping that untouched in your bank account, you could then pay off the remainder after 11 months and have only paid £1029 in total. (£1000 for the computer + a £29 settlement fee).

If you let the finance run beyond 12 months you are looking at the normal 4 year terms, and you'd end up paying £1350 for the PC (£1000 for the PC, around £350 in interest). You can't pay off after e.g. 31 months to dodge some of the interest - it's either within 12 months with no interest, or all of the interest.

So it is worth giving some thought as to how much you can realistically afford to set aside each month, in case it lets you pay off within 12 months, avoiding the interest and saving you cash in the long run. :)

D'you know I honestly thought that it was illegal (since around 2005) to front load the interest in this way but apparently (very quick Google search), when it comes to HP (buying something) as opposed to just say an unsecured loan, it's a different story.

It seems a bit wrong to say that if you pay it off early (but over the 12 months) you still have to pay all the interest.
 

Oussebon

Multiverse Poster
If you are able to repay in full the borrowed amount within the early settlement period you will not be required to pay any of the proposed interest, only an early settlement fee. If the total balance is not settled within the early settlement period then you will continue making monthly payments until the borrowed amount plus interest is paid off. This will apply regardless of the balance due or how many over-payments you have made.
https://www.pcspecialist.co.uk/finance/

I suppose one way to look at it is that you are signing up for a 4 year contract (similar to a phone?) - the contract just has the bonus that you can get out of some of the costs within the first year.

Which arguably only benefits those on middling incomes who can afford to stash away the extra £ required to pay it off after 11 months, and not those on the lowest incomes who can't afford more than ~£30pcm.

But is is worth xRev giving that some thought as depending on the exact financial position and the price of the PC they buy, it could save them cash :)
 
Top