Kitchen
Secret #19
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 install any kitchen
idea ‘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 idea' companies at their own game?
Simple. Be prepared
when the designer comes round. A lot of kitchen idea 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 idea 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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