Why no 0% finance on sale items

JohnBoyUK

I've been searching for a bargain online and have seen a few good deals in the sales and just assumed that I'd be able to finance it on 0% finance over 18-24 months but the more I read, most shops dont offer 0% finance on any bike in their sales.

Why is this the case? I cant think of any reason why...can anyone shed some light?

My dreams of a new Cannondale Supersix are disappearing into thin air at this rate as I just cant find £1,500 cash up my sleeve up front to finance it.

Slow Downcp

They're discountind old models so little or no margin - and need the cashflow. 0% finance works if there's a healthy profit in the sale

JohnBoyUK

Fair enough I suppose. Boo. No new bike for me then.

Slow Downcp

Wht not get a credit card with zero % on purchases for 12-18 months and pay that off. I bought my motorbike that way

JohnBoyUK

Slow Downcp wrote:

Wht not get a credit card with zero % on purchases for 12-18 months and pay that off. I bought my motorbike that way

Now there's an idea. Why on earth did I not think!?! You're a genius, sir!

markos1963

JohnBoyUK wrote:

Slow Downcp wrote:

Wht not get a credit card with zero % on purchases for 12-18 months and pay that off. I bought my motorbike that way

Now there's an idea. Why on earth did I not think!?! You're a genius, sir!

Not only that if you get purchase something on the card over £100 its covered if something goes wrong with the deal( shop goes bust etc)

brettjmcc

JohnBoyUK wrote:

Slow Downcp wrote:

Wht not get a credit card with zero % on purchases for 12-18 months and pay that off. I bought my motorbike that way

Now there's an idea. Why on earth did I not think!?! You're a genius, sir!

and to top it off.. if you don't have a Tesco credit card yet, you will also get a load of Tesco points as well if you use that

and if you then do your weekly shop with it as well... double points. Paid for all the family christmas presents last year

andrewlwood

I think, if you go into the shop and say 'I'll buy it, but I need the 0% finance', you stand a good chance of negotiating them where you want them; esp on a £1500 bike that is going to get harder and harder for them to get rid of as the new models come out.

Monty Zoncolan

Similarly, many (most that I spoke to) independent bike shops won't let you have their bikes at advetised sale prices if you're going through a cycle to work scheme, as they don't get paid the full amount under the scheme.

Mickyg88

If you look at Hargroves Cycles website, they do have a few sale bikes with 0% finance available, mainly Specialized and Scott, they also offer free delivery on them too.

kingrollo

Monty Zoncolan wrote:

Similarly, many (most that I spoke to) independent bike shops won't let you have their bikes at advetised sale prices if you're going through a cycle to work scheme, as they don't get paid the full amount under the scheme.

There is no stipulation from cyclescheme that you can't purchase sale items. this is down to the shop - i have verified this with cyclescheme.

Shops do pay 10% to cyclescheme - regardless of whether its a sale item or not

Slow Downcp

brettjmcc wrote:

JohnBoyUK wrote:

Slow Downcp wrote:

Wht not get a credit card with zero % on purchases for 12-18 months and pay that off. I bought my motorbike that way

Now there's an idea. Why on earth did I not think!?! You're a genius, sir!

and to top it off.. if you don't have a Tesco credit card yet, you will also get a load of Tesco points as well if you use that

and if you then do your weekly shop with it as well... double points. Paid for all the family christmas presents last year

Mine was Tesco as well - previously saved Clubcard points for two years, and bought £1200 of Goldsmiths vouchers for £300 worth of Tesco points. Wife was well happy with her diamond eternity ring - with the bonus she thought it was romantic I'd saved points so long for it

fungus_the_muffin_man

The reason why you tend to get 0% is that the bike shop absorbs the interest fee. So if you buy a bike for £1000 on 0% the bike shop only gets the difference minus the actual APR of the loan.

Hence why they don't tend to give it on sale bikes.

mouth

Fungus The Muffin Man wrote:

The reason why you tend to get 0% is that the bike shop absorbs the interest fee. So if you buy a bike for £1000 on 0% the bike shop only gets the difference minus the actual APR of the loan.

Hence why they don't tend to give it on sale bikes.

+1 The same with cars and why there is no real weight in cash purchases since the dealers tend to get a residual on your finance deals.

snowley

As mentioned above, go the credit card rout and just make sure you pay it off each month. If not get another credit card with 0% on balance transfers, transfer the balance to the new credit card and keep paying that......

A viscious circle.....

sloppyschleckonds

I cannot believe people recommending a credit card. Once the 0% rate finishes the balance is being charged at a ridiculous rate.

If you cannot buy outright then buy a cheaper bike.

Slow Downcp

SloppySchleckonds wrote:

I cannot believe people recommending a credit card. Once the 0% rate finishes the balance is being charged at a ridiculous rate.

If you cannot buy outright then buy a cheaper bike.

You just have to make sure you pay it off in the specified period - the same as you would 0% from a shop.

rajdav

Try pedalon - just got a supersix ultegra for £1799. Need to pay in 12 months before any interest. As 12 months approaches just get a o% balance transfer credit card. Therefore, can get up to 24 months interest free.

Just need to be disciplined saving the money each month.

RoadyForever

I've you can't buy the bike outright (be really need the bike). A 0% APR credit card is a better option then going with 0%.

Let me expain:

With a credit card you get the interest free period, then afterwards you get charged at your cards standard rate for the REMAINDER of the balance (normally calculated daily).

With the finance, if you don't settle within the period, the terms of the deal change into a horrible 20%+ (30% is common) APR one the WHOLE amount - this is why finance companies offer these deals, they know a certain % will get screwed.

Don't worry I don't work for a bank, just payment/ order processing systems for retailers.

Anonymous

Try JE james website, up to 36 months interest free, you have to pay a deposit. I bought my litespeed from them, no hassles at all.

MarcBC

Here is a novel idea. Put the monthly payments into a savings account then buy the bike when you have saved enough money.

The reason why 0% credit cards are offered is that the banks know most people will go on to run up a debt after 0% period has expired.

hammerite

I have 4 credit cards for various reasons (only 1 of them has money owing, that gets paid off regularly). I can't believe how often I get offered 0% on balance transfers for over 12 months, it seems with each card I get a letter offering me a balance transfer deal, when that deal expires I get another letter offering another. It's madness!

Granted there is usually a 3% fee to transfer, but if you spread that 3% over the life of the 0% balance transfer period (usually 9-12 months) then it's a tiny amount.

SLX01

Have you looked at the cycle to work scheme thats interest free?

fungus_the_muffin_man

Tesco have a new purchases 15mths 0% finance card on at the moment.

JohnBoyUK

Fungus The Muffin Man wrote:

Tesco have a new purchases 15mths 0% finance card on at the moment.

...and that is exactly the one I'm using