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Kitchen Idea | 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 is 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.
