0% interest free credit

[bigbladelittleblade]

Saw a few days ago Align-Trex.co.uk were offer an interest free credit option, now just seen that Midland helicopters are now doing the same, I wonder if anyone else will follow suit, good news for some buyers I guess and hats off to the stores mentioned.

[debrooker]

its an improvement on using a credit card or going overdrawn.

Wouldn't be so keen knowing that I'm paying back monthly on a model i've just crashed. I'd always advocate saving first, but I guess i'm more fortunate than others.

[GIXERMAN]

midlands have done for ages, not my policy if i can't afford i don't buy. thats includes everything part from a little mortgage

[waveydavey]

Me too Brian, if I can't buy it I won't that includes credit cards, it's a hobby. Works for some I suppose, interest free rather than breaking into your savings I can see the attraction I suppose

[DaveG]

Not a good idea in my opinion!! Unless it is underwritten by a third party. Our company uses a process called factoring, which takes responsibility for the invoice for a small percentage but pays the supplying company 90% of the invoice total, great if you have the margins to cover it but if not your always going to be loosing 10%! It's great for the buyer having 0% but not the supplying company.

If your struggling to pay bills of buys things in this hobby then perhaps it is not the hobby to be in if your income does not support it, another option would be to switch and swap credit card companies, most will give you 0% on balance transfer and purchases from anything between 6-12 months.

It is either a tit-for- tat move between the shops or just another way of trying to win custom

[Granpappy]

Interest free credit is only a problem if it tempts people into buying things that they either don't need or cant afford. If you don't fall into that trap then it's great because you can hang on to your capital for as long as possible which earns interest, without any penalty. I also pay by credit card if I can because it gives you insurance against defective products should you need it. As long as you pay the card balance off at the end of each month then again, there is no penalty.

If shops offer interest free credit, then it is a business decision on their part. Who am I to argue.

[scallybert]

Not a good idea in my opinion!! Unless it is underwritten by a third party. Our company uses a process called factoring, which takes responsibility for the invoice for a small percentage but pays the supplying company 90% of the invoice total, great if you have the margins to cover it but if not your always going to be loosing 10%! It's great for the buyer having 0% but not the supplying company.

The customer pays for it through higher prices - ie to maintain that margin referred to above.

[Rob Barnes]

Not for me either especially on this hobby ! There would be nothing worse than buying a 700 class helicopter and stoving it in and then having a repair bill for 50% of the cost again !

[Leigh Beaumont]

Our local model shop lets a lot of regulars have stuff on tap still does and they have nearly all binned a model before paying it off so they put spare on tap to lol. But both parties still happy as he gets models and parts sold and they can either keep a wodd in wallet or buy latest model they can't quite afford at time, not done it myself with heli but see the appeal if bit short for cash at time