| 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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