Harvey Norman Flexi Rent

V.W.L 11

Has anybody ever done this???what are your opinions???

ABajaninCork

If you look at the costs it's a very expensive way of getting the equipment. If the agreement goes to term, you end up paying far more than the original cost price.

HN no longer offer interest-free credit, so if I were you, I'd look to finance by other means.

Flexirent is a bit of a con, IMO.

V.W.L 11

ABajaninCork wrote: »

If you look at the costs it's a very expensive way of getting the equipment. If the agreement goes to term, you end up paying far more than the original cost price.

HN no longer offer interest-free credit, so if I were you, I'd look to finance by other means.

Flexirent is a bit of a con, IMO.

I done the maths from the details i was given its about €720 for a €600 loan over 12 months

Cabaal

Could likely get a credit union loan and pay less over a 12 month period,

whirlpool

Flexi rent is often passed off as a con and a scam, but what nobody ever mentions is that the product you are purchasing is completely insured as part of the Flexirent scheme. So, the overall cost includes insurance on your product until you have it paid off.

Am I wrong?

Insurance can be invaluable, especially if purchasing a new laptop, tv, etc..

emeldc

V.W.L 11 wrote: »

I done the maths from the details i was given its about €720 for a €600 loan over 12 months

:eek: At those rates I'll lend you the money meself :rolleyes:

Yakuza

Paying €60 a month for 12 months for an outlay of €600 is an annual interest rate of just over 41%. Even credit cards don't charge that much. I'd be looking at financing that another way; personal loan from a bank or credit union.

whirlpool wrote: »

Insurance can be invaluable, especially if purchasing a new laptop, tv, etc..

Some credit cards include purchase protection as part of their services too.

Bepolite

All credit is a 'scam' in some way or another. I use the term very loosely of course. When it comes to buying a car or house credit can be cheap because it's secured on an asset. You obviously need a place to live and a mortgage is cheaper than renting in most cases. The case for a car is weaker given public transport but that varies from area to area.

The case for a well thought out credit card is again weaker but is the norm today, a credit union loan is even better of course. When you start getting into the likes of Littlewoods and HN flexirent there are two three possibilities:

i) Your other lines of credit are maxed out
ii) Your credit is too poor to avail of a better option
iii) You don't know enough about credit (The option that you seem to be fixing to be fair)

Given that pretty much anything purchased from HN is not a necessity I would resolve the above issues first personally. Now to be fair that's easy for me to say, but since being debt free largely down to my wife sorting me out a long while ago, I do have the odd pang for X gadget but it's nothing compared to the stress I was under when I was in debt.

Sorry for the lecture, felt it needed saying.

EDIT: Added third option.

whirlpool

Bepolite wrote: »

All credit is a 'scam' in some way or another. I use the term very loosely of course. When it comes to buying a car or house credit can be cheap because it's secured on an asset. You obviously need a place to live and a mortgage is cheaper than renting in most cases. The case for a car is weaker given public transport but that varies from area to area.

The case for a well thought out credit card is again weaker but is the norm today, a credit union loan is even better of course. When you start getting into the likes of Littlewoods and HN flexirent there are two three possibilities:

i) Your other lines of credit are maxed out
ii) Your credit is too poor to avail of a better option
iii) You don't know enough about credit (The option that you seem to be fixing to be fair)

Given that pretty much anything purchased from HN is not a necessity I would resolve the above issues first personally. Now to be fair that's easy for me to say, but since being debt free largely down to my wife sorting me out a long while ago, I do have the odd pang for X gadget but it's nothing compared to the stress I was under when I was in debt.

Sorry for the lecture, felt it needed saying.

EDIT: Added third option.

Right. Well, assuming that the OP is a fully grown adult with a mind of his/her own, lets avoid bringing his/her entire personal financial circumstance's into question and instead lets stick to giving our opinions about Harvey Norman's Flexi Rent program.

Bepolite

whirlpool wrote: »

Right. Well, assuming that the OP is a fully grown adult with a mind of his/her own, lets avoid bringing the his/her entire personal financial circumstance's into question and instead lets stick to giving our opinions about Harvey Norman's Flexi Rent program.

Congratulations on your promotion to Mod.

My opinion is clearly stated in the post.

whirlpool

Yakuza wrote: »

Some credit cards include purchase protection as part of their services too.

So the OP should, in that case, contact his/her credit card company to investigate what (if any) insurance they will provide on their new purchase from Harvey Norman, and compare it to the insurance provided by FlexiRent, to make the best decision in the long-run.

whirlpool

Bepolite wrote: »

Congratulations on your promotion to Mod.

My opinion is clearly stated in the post.

Mod? I think that minding ones own business is actually just decency and common sense, not moderation.

Bepolite

Depending on what the OP is buying it will likely be covered under his household contents insurance. If not buy some decent gadget insurance. Both options will work out cheaper than using Flexirent with it's very high interest rates.

maximoose

I used flexi-rent 2 years ago to get an iPad. Wouldn't do it again. I went in to Harvey Norman's to get the 10 month interest free credit option, was declined but told I was accepted for flexirent - and the temptation of being able to leave the store with the tablet in hand got the better of me.

Crazy interest rates, even when you take the insurance in to account.

dudara

Given that this topic is about personal finance and credit, I am moving it to the Banking, Insurance & Pensions forum

dudara

Bepolite

I can't even find the APRs or the T&Cs. Now I'll admit perhaps I'm being thick and just not seeing them but AFAIK not having them on the front page of any ad is a breach of various peices of consumer protection legislation*.

Anything over 19.9% is mental APR - even at that it's very expensive given the current cost of borrowing.

My succinct advice OP is don't do it. There is a better option out there. If you have the cash, or even credit which is not tied to one provider you get X gadget cheaper through Amazon et al.

*now this has been moved would anyone set me right on that please? (or even anyone from before the move )

V.W.L 11

Cabaal wrote: »

Could likely get a credit union loan and pay less over a 12 month period,

If only i had one :-(

Bepolite

V.W.L 11 wrote: »

If only i had one :-(

Have you approached your bank for a credit card? (Not that I think that's a great idea either - but as has been said you're as adult)

maximoose

Using the get a quote option on their site, the monthly cost of €600 equipment would be €61.98, so €743.76 over 12 months. However that isn't telling you that you still don't own it after that 12th payment, and you have to then choose the "Flexi Offer" end of term option to own it

Flexi Offer
Offer to purchase the equipment if you'd like to own it.
You can offer any price you choose, however we have the right to accept or reject your offer.

This is usually one extra months rental. So you end up paying €800 for €600 worth of goods. Extortionate. Can't believe I fell for this, damn you lovely iPad :pac:

Avoid OP. Save, Credit Card, Credit union are much better options.

Bepolite

maximoose wrote: »

Using the get a quote option on their site, the monthly cost of €600 equipment would be €61.98, so €743.76 over 12 months. However that isn't telling you that you still don't own it after that 12th payment, and you have to then choose the "Flexi Offer" end of term option to own it



This is usually one extra months rental. So you end up paying €800 for €600 worth of goods. Extortionate. Can't believe I fell for this, damn you lovely iPad :pac:

Avoid OP. Save, Credit Card, Credit union are much better options.

There's a balloon payment at the end?! Something was niggling at the back of my mind about that. How much is it?

maximoose

I think the standard is just one extra payment of your normal monthly rental, that's what it was for me anyway.

When you come to the end of your term these are your options:

Flexi Upgrade
Upgrade to the latest equipment with a new Flexirent Agreement, and make us an offer to purchase the old equipment. If you are upgrading to new equipment under a new Flexirent Agreement, Flexirent will typically accept a discount to the price we would normally accept.

You can offer any price you choose, however we have the right to accept or reject your offer. As a reward for continuing your relationship with us, we would be prepared to accept a discount to the price we would normally accept. Even better, the purchase price can be included in your new Flexirent Agreement.
Flexi Swap
3 months prior to the end of term, simply return the old equipment in good working order and take out a new agreement for equal or greater value and Flexirent will waive up to 3 remaining rental payments.
Flexi Extend
Extend your agreement if you are happy with the equipment.
You can even contact us and negotiate to extend the rental term with lower monthly payments.
Flexi Offer
Offer to purchase the equipment if you'd like to own it.
You can offer any price you choose, however we have the right to accept or reject your offer.
Flexi Return
Return the equipment to us if it's no longer needed at the end of the term.

big_moe

i used flexirent a few years when i first got a house and was broke -i found it decent. you first need to understnad what Flexirent ISNT

It is not "a loan" or traditional credit. you are renting the service of a piece of technology.. not buying a piece of technology

So lets say you put a laptop on flexirent, at the end of your term you have a few options
pay a final offer payment to own the product
give the product back and pay nothing more
give the product back, take the latest model of laptop etc and continue to pay the monthly repayment

for somebody who wants to own a product for the lifetime of it, flexirent is not the right option. I like having the latest tech so i put a smart tv on it a few years ago, I now go in every year and and swap the tv for the latest model

it's like renting a house for life - yes you will pay more for it but you can move out at anytime without having to worry about selling the house. it would be cheaper to buy the house outright but then you're stuck with it - or you may not be able to get money upfront for the house

In my case, i couldnt afford a smart tv outright, so i flexirent it, yes i pay a few quid extra but every year i get the newest one and my products are insured for accidental damage etc and i dont need to bother with reselling etc to get the latest model

basically, it will depend on the value you are looking to use. if its a laptop for 400/500 quid my choice would be to save a little bit longer until i can buy it outright - but if you looking for a 1200 macbook etc thats when it becomes worth considering!

V.W.L 11

Bepolite wrote: »

Have you approached your bank for a credit card? (Not that I think that's a great idea either - but as has been said you're as adult)

Nope never did,the temptation would be too much if i had one

goose06

Depending on what you are buying DID do a 6 month & 12 month interest free credit option.

V.W.L 11

big_moe wrote: »

i used flexirent a few years when i first got a house and was broke -i found it decent. you first need to understnad what Flexirent ISNT

It is not "a loan" or traditional credit. you are renting the service of a piece of technology.. not buying a piece of technology

So lets say you put a laptop on flexirent, at the end of your term you have a few options
pay a final offer payment to own the product
give the product back and pay nothing more
give the product back, take the latest model of laptop etc and continue to pay the monthly repayment

for somebody who wants to own a product for the lifetime of it, flexirent is not the right option. I like having the latest tech so i put a smart tv on it a few years ago, I now go in every year and and swap the tv for the latest model

it's like renting a house for life - yes you will pay more for it but you can move out at anytime without having to worry about selling the house. it would be cheaper to buy the house outright but then you're stuck with it - or you may not be able to get money upfront for the house

In my case, i couldnt afford a smart tv outright, so i flexirent it, yes i pay a few quid extra but every year i get the newest one and my products are insured for accidental damage etc and i dont need to bother with reselling etc to get the latest model

basically, it will depend on the value you are looking to use. if its a laptop for 400/500 quid my choice would be to save a little bit longer until i can buy it outright - but if you looking for a 1200 macbook etc thats when it becomes worth considering!

From what i understand its like hire purchase,e.g a car etc,once the final payment is made you own it

Yakuza

maximoose wrote: »

Using the get a quote option on their site, the monthly cost of €600 equipment would be €61.98, so €743.76 over 12 months. However that isn't telling you that you still don't own it after that 12th payment, and you have to then choose the "Flexi Offer" end of term option to own it



This is usually one extra months rental. So you end up paying €800 for €600 worth of goods. Extortionate. Can't believe I fell for this, damn you lovely iPad :pac:

Avoid OP. Save, Credit Card, Credit union are much better options.

Bepolite wrote: »

There's a balloon payment at the end?! Something was niggling at the back of my mind about that. How much is it?

Holy crap, paying €61.98 for 13 months for goods worth €600 has an APR of....drumroll...69.66%. Just a shade under 70%. That is absolutely outrageous.

ABajaninCork

V.W.L 11 wrote: »

From what i understand its like hire purchase,e.g a car etc,once the final payment is made you own it

No, you don't! As stated before, you have to make an additional payment BEFORE you own the item!

emeldc

Yakuza wrote: »

Holy crap, paying €61.98 for 13 months for goods worth €600 has an APR of....drumroll...69.66%. Just a shade under 70%. That is absolutely outrageous.

Yea, but not to worry, it's insured in case you drop it down the jax or somethin'.

V.W.L 11

Many people have no choice but to I think,i imagine were they offered more money on top of the monthly payment for a quicker settlement they'd accept i'd be surprised if they refused that

osteks

Hi Guys,
I have finished contract with Flexirent and all I can say DO NOT SIGN anything with them!!!

First of all they are expensive, but the worse is the total cost what you can e.g. calculate on harveynorman site is not a total cost you will end up paying more.
So my contract was 12 months contract and I though after paying 12 months Tv is paid off and that's it but here is a suprise, no they charge me one more time so I rang them and then they said that after 12 months I can buy the TV and they can close the contract but won't give me a 13th payment back. So I Was told I should read the contract carefully before sign, so I suggest to avoid companies like that.
Any loan would be much cheaper and without hidden extra costs.

And I found there were more ppl having the same conversation I had with flexirent CC
bocktherobber.com/2012/05/no-harvey-no/

Toots

Thread is 18 months old.