Is Hire Purchase a thing of the past?

ZOLTAN28

Is it possible in Ireland to still buy products on HP?

Noticed that Currys have stopped doing it and have checked DID and Power City websites but no mention.

Used to buy all my appliances this way and now that times are tough again can't afford to shell out big cash on a new cooker.

purpur1

As far as I know it's still available. Argos and Harvey Norman still do it.

HFC/Household Bank used to be the providers but they legged it out of Ireland so i don't know if they're the providers these days.

coylemj

The only products that you can buy under HP these days are cars for the simple reason that a car holds it's value relatively well compared to consumer durables like TVs and washing machines, that means that the finance company can come and seize the car if you fall behind with the payments and provided they didn't lend you 100% of the price they have a good chance of getting their money back.

What is offered for other items by retailers is a straight loan, you borrow the money which is used to pay the retailer and ownership of the goods passes to you as soon as it's delivered. You then owe a bank or finance house the loan.

ZOLTAN28

Ah - hadn't considered Argos.

Interesting that it seems to be dissappearing - I used to avail of the old 12 month interest free jobs - you had to pay so much per month and then you hadto clear the rest before 12 months oryou ended up on a multi year deal at high interest - worked well fr me as I always made sure it was paid in full.

I wonder did Currys have a lot of defaulters or did they just think it wasn't worth it henthefinance companies pulled out.

coylemj

Your thread title asked about Hire Purchase, what you're really enquiring about is retailers offering loans to cover a purchase. The answer is that some do, some don't, you need to check on a store by store basis.

In cases where finance is on offer, the loan is funded by a third party and it constitutes a loan to you, not HP, as the lender doesn't retain title to the goods.

ZOLTAN28

Still - nobody seems to do either except Argos (6 months interest free) and Harvey Norman (flexirent)

Antibac

Recently got some stuff in DID on it.
Creation finance they use. Hope this helps

bongi69

ZOLTAN28 wrote: »

I wonder did Currys have a lot of defaulters or did they just think it wasn't worth it henthefinance companies pulled out.

I worked for DSG (Dixons, Currys PC World) in of the the Dixon's branches, 3 years ago in the "good times". The HP company changed a few rules back then, and overnight it became quite difficult to actually get finance agreed. Suddenly people who you knew where a shoe in were getting refused, even a few full time staff memebers were refused. The refusal rate was about 60-70%, and it eventually got to the stage where I really didn't want to go through the whole application with someone, as my chances of picking up a cash sale on the floor and getting my commission during the 20+ mins it took were greater than getting the finance approved. This could be the reason why they've stopped doing it.

On another note it may work out better to put something onto your credit card rather than HP. If you take an interest free HP option, you have to make the balloon payment at the end, instead with the card you can just keep paying extra until its cleared. Because you're fooked if you don't have enough to cover the balloon payment.

ZOLTAN28

Cheers people - DID might be the answer then - they don't seem to mention it on their website.

Interesting to hear the story regarding the high refusal rate - it obviously bcame a wast eof time to offer it.

The payment at the end has always worked out okay for me - I will be able to afford the item in 6 months but not now - however it may be a case of having to get it now - it's a cooker and our one is on the brink of collapse (good timing a month before xmas) - it may survive but I need an option in cas eit doesn't and cash and credit cards are not an option at least until the middel of next year.

keithclancy

bongi69 wrote: »

I worked for DSG (Dixons, Currys PC World) in of the the Dixon's branches, 3 years ago in the "good times". The HP company changed a few rules back then, and overnight it became quite difficult to actually get finance agreed. Suddenly people who you knew where a shoe in were getting refused, even a few full time staff memebers were refused. The refusal rate was about 60-70%, and it eventually got to the stage where I really didn't want to go through the whole application with someone, as my chances of picking up a cash sale on the floor and getting my commission during the 20+ mins it took were greater than getting the finance approved. This could be the reason why they've stopped doing it.

On another note it may work out better to put something onto your credit card rather than HP. If you take an interest free HP option, you have to make the balloon payment at the end, instead with the card you can just keep paying extra until its cleared. Because you're fooked if you don't have enough to cover the balloon payment.

Or you could just save the money every month to purchase it when you can afford it.

Using a credit card to buy something you do not have the money for is just stupid. You should only use your credit card when you can pay off the full amount at the end of the month.

purpur1

As far as DSG stores were concerned, there was no high refusal rate, there was actually on average an 80% acceptance rate in the "good times" - the quality of the applicant just declined as time went on or the people applying were already financed up to their eyeballs at this point and were not being given any more. It balanced out as a very high acceptance rate overall.

It was actually far to cheaper to take out an interest bearing loan over 1 year than putting the goods on your credit card. The interest free options are actually excellent if you use them properly and pay before your period is over.

Might be worth checking out B&Q as well, i know they were doing it in the good times, DID should still be doing it too.

ZOLTAN28

Harvey Norman are doing it again - either 16.9% or interest free over 12 months - they call it QuickCredit and seem to be pushing it recently.

ytpe2r5bxkn0c1

ZOLTAN28 wrote: »

Harvey Norman are doing it again - either 16.9% or interest free over 12 months - they call it QuickCredit and seem to be pushing it recently.

16.9%! For goodness sake. Join a Credit Union, borrow at 6.5% to 6.9%, and pay in cash.

16.9% :eek:

cast_iron

Davis Yummy Fishhook wrote: »

16.9%! For goodness sake. Join a Credit Union, borrow at 6.5% to 6.9%, and pay in cash.

16.9% :eek:

Banks are up about 12/13 these days!!