Don’t get ‘ripped off’ by the kitchen finance option

Nobody likes to go into debt.

However, the vast majority of people buying a new kitchen will at least be borrowing some of the money.

Even though thousands of pounds could be at stake, surprising amounts of people still opt for the first finance package offered to them.

A lot aren’t even aware of the interest rate they’re on, the amount of time the loan is going to take to pay off or even if they have payment protection or not. In addition to that, what’s the point of having payment protection unless you’ve tailored it towards your particular lifestyle?

Never be bullied into accepting anything to do with finance. You’re in charge until you let your heart rule your head and you start to want the kitchen ‘at any cost.’

One of the main reasons that customers do ‘sign up’ straight away is that they get carried away emotionally.

They get ‘taken in’ by the limited offer given by the designer and feel that they have to give a definitive yes or no to each and every option given to them.

Interest rates presently in many countries are at an all time low.

That – for some strange reason doesn’t seem to be applying itself to many parts of the home improvement industry.

A typical home improvement loan in the UK kitchen marketplace tends to be flexible and over a maximum payment period of ten years. This is generally offered to customers in order to diminish the chances of the finance package ‘breaking’ the kitchen sale. Nothing seems to be more comforting to a customer than a low minimum payment. It’s a much higher priority than a low interest rate. Strange.So how do you play kitchen companies at their own game?

Simple. Be prepared when the designer comes round. A lot of kitchen companies want to play the game of either doing the ‘one off offer’ or ‘only able to hold the price for a couple of days’. Either way, this would mean that you wouldn’t have enough time to look elsewhere.

However, if you already know the appliances you need and how much they will cost, have already arranged a provisional loan and have a good idea of how much you are willing to pay for kitchen cabinets and fitting you are in a very, very strong position.

This means that you can barter with the kitchen designer and get the best possible deal because you’re ready to make a decision.

So what about the finance package offered by the kitchen company? Should you sign?

That depends upon what you think of the small print – and the extra discount that a designer should give you upon accepting his finance.

A kitchen company pays a designer more commission for selling finance because the kitchen company themselves earn a ‘kickback’ from the finance company.

A customer can take advantage of this knowledge by bartering an extra discount with the designer for accepting their finance package. If you are the customer, you should only take advantage of this information if either a) You can pay off the loan early if you desire or b) The resultant interest is comparable with another loan that you have already researched. Don’t be afraid of making the decision – but make it because you are in possession of all of the information.

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