Harvey Norman ** months interest free question.

[Watcher]

Has anyone here actually made a purchase with Harvey Norman and gone with one of those interest free deals and if so, what fees apply to the deal?

Thanks.

[jokiin]

I haven't used them but have a look here, the pros and cons have been debated http://www.dtvforum.info/index.php?showtopic=37411 might be of some help

[femme fatale]

Have done a few years ago, Watcher, and there were no hidden fees that I can recall. As long as the purchase is finalised within the specified time, the purchase price is all you pay. Outside that you will be charged interest. When you apply, they'll use your information to decide whether you are a good risk, and whether you can afford to pay and still manage to live with some extra leeway, based on your income and expenses. This second requirement seems to be common practice and I think it could be a legislated requirement (correct me if I'm wrong) to prevent financial hardship.

On the plus side of paying cash if you can do it (not always possible or easy, I know), is that if you ask for a discount, you could very well get it, and there is no monthly debt hanging over your head, adding to all the others you may already have. ;)

What are you eyeing off, one of those big new entertainment systems? :D

[JimJim]

Our family has done these deals at least 10x. Basically:

- If you can pay the price of the item in the time alotted, you're good to go.
- If you can't pay the price of the item in the time alotted, you're screwed.

[Watcher]

What am I eyeing off?
New computer.
Xbox 360.
Very, very big Plasma or LCD TV.
New Amp and speakers.
Reverse Cycle airconditioners for family room and bedroom.
Video Ipod or similar.
The list goes on......

What am I seriously going to get? Nothing.:dD

I was giving computer advice today ( so many people who know me will be pissing themselves laughing at that comment:rolleyes: ) and I said that I desperately need a new computer, but have no free cash and a huge debate started.
Most people were saying that these interest free deals are the way to go, but a couple of people were saying that there are small fees for each payment before the final due date.

Everyone there had a lot of advice and were stong in their opinions, but nobody actually used one of these deals themselves, so this is why I was asking if anyone has actually done it themselves.

Thanks for the link jok11n, I'll check it out in a minute. :)

[jokiin]

What am I eyeing off?
Thanks for the link jok11n, I'll check it out in a minute. :)

No problem, I'll expect your report on my desk in the morning:D (just kidding of course:p )

[Lord Smelly]

I haven't done it with Harvey Norman but have done with Megamart, Freedom, and somewhere else.

If you pay the entire amount off then your fine that is all you pay. The second that the time is up regardless of what is owing you get slugged with the compound interest of what you would have been charged from day 1.
So if you decide to take the interest free period then if for some reason you aren't going to pay it off in time, go get a bank loan or similar, pay it off and then pay interest on the bank loan.

[Matt_3D]

My fiance and I recently bought a couch from Harvey Norman (which should be arriving in the next 2 weeks) on the interest free deal. It's basically like Jim Jim said, if you pay on time, they you're fine, otherwise be prepared to pay out of your ears ;) I don't have the paperwork in front of me, but there isn't really any catch to it apart from getting it payed off in total before the end of the interest free period.

[Diabolical]

I bought my laptop from Harvey Norman last year when they were advertising their interest free deal. The promotion at the time required you to put down a percentage of the cost of the item you were buying (I forget exactly how much but it was significant enough for me not to bother with it) and it took some time for the approval to happen, so you couldn't take it away that same day. Basically I had to lay out a few hundred dollars beforehand and couldn't walk out with the item then and there so I didn't take them up on their interest free offer. What I did do, was a 12 month deferred payment option. Basically, you purchase the item on the spot (assuming you get approval) on their store credit card...you defer the payment for 12 months without getting charged interest, just a small account management free of a couple of dollars a month. When the 12 month period is over you then get stuck with a 27% interest rate on the remaining amount on the card. Understandably this is a HUGE risk if you're not likely to be able to pay it off in the time. I just made sure I paid them regularly, even though the payment was deferred, and when the 12 month period was over I'd paid the whole thing off.

[MrMacabre]

Just don't buy an XBOX360, W.

I've gone through 2 since launch - both have fried from overheating / shoddy manufacturing. I treated it like a f*ckin King; always powered it down via the dashboard and not in-game; kept it well ventilated; well secured; etc, etc...

Had no warrenty on the 2nd one - so now I have a nice 360 paperweight. So if you want to waste yo money, buy an xbox360.

F*ck MS.

PS: In reference to the 'interest free' theme of this thread, I thought I'd also add that I bought my 360 on interest free and still owe $700 for something less than six months old and now doesn't frickin work.

[TheAnswer]

you do get a $2.50 charge per month for the duration of your contract and if you pay your payments at the post office thats another $1.50 charge. So works out to be $4 a month in fees that way. As others have said though if you do pay it off in time then you have no other fees to worry about.

[whizzfizz]

watcher..
in addition to the monthly account keeping fee, there will most likely be an application fee when you sign up. There may also be some sort of stamp/credit duty on the finance, however the amount will be immaterial. You will also need to check to see if there is a early repayment fee .... and there may also be a fee for each repayment as well depending on your payment method (such as b-pay).

If you go for one of interest free deals try and pay as much up front as possible (HN may require a one third deposit), and divide the remaining balance outstanding by the number of interest free months and establish a direct debit to pay the debt, that way you will be sure you pay it out before interest is charged.

Remember that ultimately the interest from the financier is effectively built into the price of the goods you pay. For a two year interest free deal your goods will cost you a premium of around 15-20% (this is called a retention fee)..... interest free deals :rolling::rolling::rolling:

personally i would not buy a computer from harvey norman anyway, I have heard too many horror stories.

[whatmeworry]

Has anyone here actually made a purchase with Harvey Norman and gone with one of those interest free deals and if so, what fees apply to the deal?

Thanks.yes i have. and no fees apply from harvey norman itself, BUT you have to have a creditline card like agc or some other card. there is a 50 cents bpay fee and a $2.50 a month account keeping fee. anything else just ask.
<edit> dont pay the minimum monthly payment always pay more other wise you end up in the shit,not that we have.

[dvder]

you can always ask 'em what the monthly payment will be if you don't pay it out..just incase you don't pay it on time and you can then work out a budget if you don't..

[snapper]

I did a 19 month deal for my xbox 360 and went with GE.
GE charge you fees for paying it off using BPay I think its a dollar or so.
Also I think there are account keeping fees or statement fees but not much.

The danger with getting the GE card is that you can use it like an ATM card and withdraw cash from it and the cash incurrs interest immediatly

[byrons mate]

as Harvey Norman go with agc creditline , there is usually a $25 application fee if you are not already an agc customer.

Be aware that they dont like sending you updates on your account , so the opportunity to forget your debt is increased.

And of course the usual account fees as laid out already in the forum.

They will also not haggle for a price if you use AGC as there is a commission paid to agc on the retail price of the item.

[JimJim]

As long as you are a member of GEcreditline (I think it is), you are able to take it away on the day. If not you will have to fill out forms and wait on your first purchase, which may be worth it in the long run.

[popeye]

I've purchased a couple of things through David Jones, on both 12 and 24 months interest free, using their store card. There is an initial $20 establishment fee when you make the purchase, then you just pay it off in equal monthly installments. They will slug you $35 if you miss a payment though, but as they send you a statement every month, you only have yourself to blame if you miss one.