Question re: Apple UK 0% finance offer

Discussion in 'Buying Tips and Advice' started by dryjoy, May 26, 2009.

  1. dryjoy macrumors regular

    Mar 19, 2009
    Hello. I have just ordered a Mac Pro with UK HE discount and been approved for the 0.0% consumer finance option over 10 months. I thought that, as I have saved about 3/4 of the money already, why the hell not spread the payments at no extra cost, and get the Mac sooner than if I had to have all the money up front.
    I normally shy away from credit deals, I like to just pay upfront, but I got tempted by this because it shouldn't cost me anything extra, and I have most of the money already to back up the loan.
    I want to make sure everything is OK before I make the final commitment by signing and returning the payment agreement.
    In the agreement it says:

    "Early Settlement of this agreement – If you choose to settle this agreement early on the dates below the amount you will pay, per £1,000 borrowed (unless you borrow less than £1000, where the amount is based on per £100 borrowed) will be: When a quarter of the term has elapsed £700.00, When half of the term has elapsed £500.00. When three quarters of the term has elapsed £200.00."

    If I am understanding this correctly, it appears that there is no penalty for paying off the balance early, and in fact it seems that you would save money by doing so. For example, I would have expected the amount repayable per £1000 after a quarter of the term has elapsed to be £750.

    Does anyone have any experience of this stuff? Am I reading this correctly? If so, I might as well pay back the first two or three installments, and then pay the rest off from my savings and save some money. Seems too good to be true, and in my experience if it seems too good to be true, then it is. What's the catch?

  2. acearchie macrumors 68040


    Jan 15, 2006
    I believe this is actually saying that if you pay back after a quarter of the time you will have to pay £700 on top of the price of your mac.

    Looks like youll just have to stick to the 10 months if you want to save cash.

    At least I think this is what it is saying.
  3. dryjoy thread starter macrumors regular

    Mar 19, 2009
    I must admit, that was my first thought as well. But I think that would be in violation of the UK consumer credit act. I might have to check on a specialist forum.

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