Buying appliances on instalment plans can be a great way to fit essential products into a tight budget. When you don’t have the savings to purchase large home appliances like a refrigerator or washing machine, buying on finance can help you break down costs into more manageable weekly payments. The best part is: you don’t have to wait to get the appliances (or furniture!) you need to live comfortably.
With all that said, no financial decision is without risks. If you’re considering buying an appliance on finance for your new home, be careful to avoid these pitfalls so you can enjoy your products without stress.
Mistake #1: Buying a pre-owned appliance on finance
Be careful where you buy or rent from. Some companies provide pre-owned or previously rented products. While this may not seem like a bad thing, you run the risk of getting items that are already in poor nick or that don’t have manufacturer warranties.
Preloved products may be okay for short-term plans, however, if you aren’t sure how long you’ll need the product or if you’d like to own the product at the end of the instalment period, they won’t be worth your time or money.
Look for a company that only sources new products, like R4K. We’ll supply you with new items and provide an instalment plan that suits your timeline and budget. This means you’ll get brand-new products in perfect condition, with a full manufacturer warranty.
Mistake #2: Choosing low quality appliances
When you’re tight on cash, it can be tempting to choose the cheapest products on the market to rent or buy. The issue here is that many cheap products aren’t made to last. If you’re entering a standard 36-month rental or instalment plan or even a short 12-month plan, the cheapest products may not last you the full term. Plus, if you want to own the product at the end of the period, you want it to stay good for years to come after the plan ends.
You can often find affordable products that are still of great quality, so take your time and shop around. When you buy through R4K instalment plans, you can be sure that all products are brand new.
Mistake #3: Choosing an appliance you can’t afford
On the other hand, you should never buy a product on instalment that you can’t afford. At R4K, we understand that credit checks can be misleading when taken out of context. If you don’t have a credit history or have previously had difficulties that have since been resolved, it can look bad on a credit report. But this is a limited view of your financial capability and focuses only on the past.
It’s important to know what you can reasonably afford, and it’s up to you to define that as you’ll have the best understanding of your financial situation.
Live within your means and choose appliances that meet your needs without costing too much. Function should always be more important than aesthetics. Remember, an overly expensive item can become more of a burden than a treat if you can’t afford the weekly or fortnightly payments.
R4K will assist you to ensure you are able to afford the weekly or fortnightly payments. Best of all, there are no upfront costs and flexible terms of between 24- and 36-months or shorter terms on request).
Mistake #4: Not reading the user manual & warranty
Once you have your appliance, phone or technology product, it’s crucial you read the user manual and the warranty. Why? Because you want to be sure you use the appliance correctly and don’t void the warranty.
Manufacturer warranties often cover faults, but do not cover accidental damage, or give you protection against misuse (whether intentional or not). Read the user manual to set up your appliance and pay attention to any warnings or cautions recommended in the manual.
Read through the warranty as well, and make sure you understand what’s covered and what’s not covered. If something happens to the appliances and technology, contact the manufacturer at your earliest convenience to ensure it is dealt with ASAP.
Mistake #5: Not insuring your appliances bought on finance
While your warranty will cover certain types of damage, insuring the appliance that you bought through a finance or instalment plan will usually protect you from any other accidents. Contents insurance can help to cover the costs of replacing or repairing damaged, lost, or stolen items. Your warranty won’t cover theft or loss and will probably only cover very specific types of problems usually manufacturing defects.
Some product finance companies will require you to insure your products. While this may seem like a hassle, insuring your appliance can save you from nasty surprises if an unfortunate event occurs. You don’t want to be liable for a large payment to replace or repair an appliance, so make sure you get adequate insurance.
Buy any appliance on finance with R4K
If you’re moving into a new home, going flatting for the first time or you’re on a benefit and don’t have the savings to make a big purchase, buying appliances on finance could be right for you. Keep the above mistakes in mind, and you’ll be buying with the confidence that you can avoid any unfortunate pitfalls.
When you sign up for R4K finance plans, we will assist you to get the right product and plan to suit your needs.