model shop question!

[Shaun 'TheSheep' Atkinson]

Does anyone know of any model shops that do a pay monthly service?

[Dudders]

As in accounts?

[Shaun 'TheSheep' Atkinson]

Yeah, like finance

[Dudders]

Why would they do that?.

Why dont you get a credit card instead?. Why should they finance you?

Just a thought.......

[Shaun 'TheSheep' Atkinson]

It was just a question of curiosity...

Why wouldnt some model shops do it? Most other places do now days...
If I wanted to get ripped off I would get a credit card, but i'd rather pay straight up.

[Frecklychimp]

I'm glad mine doesn't... would be working 3 jobs to pay weekly for my wishlist.

I'd get a 0% credit card deal personally (apart from i pay cash for everything!)

My best mate owns my LHS... its seriously tough at the minute for hobby shops that don't just do specialist racing gear, especially since VAT changes

I chuck cash in the shop whenever possible on a saving scheme... on going credit note!

[Dudders]

Credit card on direct debit full balance, simples

[ianhaye]

rather just buy toys outright,

[racingdwarf]

unless you have a great relationship with your lhs and been going there for years... no chance, why take the risk as a shop? people who think finance wise think credit card(as has been said) is made for just this reason and they would rather you fell foul of mr visa, than legged it owing them money should your finaces take a turn for the worst

For a short time my LHS tried a small finace company,so people could pay monthly for rallyx kits etc,BUt the thing was you had to be in no debt and not be in overdraft to get the finace...if your ballance looked that good,you didn't need finace so it never worked

Now days even big firms like ING class anyting less than £5000 as credit card teratory

[MRD]

I use my credit card as a stop gap but nothings on it for more than a few week and Ive never paid interest as long as Ive owned one.

Its too easy to get into financial trouble these days as it is without getting in dept with your LHS too.

[jameswilkinson7]

Credit cards and finance are the work of the devil!

If you haven't got it you shouldn't spend it.

[DCM]

Some shops used to do like a Christmas saver club, where you buy something, but they hold onto it whilst you pay it off, I don't think they would just let you walk out. Plus I would imagine they would need a licence or something to have the ability to give finance.

[G-46]

I would never get finance on RC stuff as at the end of the day it's not ancestral part of living.

But I do know of one store that offers finance, wheel spin

[Si Coe]

I must admit, its interesting as other places that sell similar value items (in particular bike shops) do ofter such a service. So it is plausible - and yes, you do walk away with the bike and the credit agreement.
But its not the way to pay for stuff, so I'm glad they don't.......

[mole2k]

My LHS would have a select few with accounts but really it's only people known personally to the owner who he knows can afford the things they buy.

Then a couple run credit accounts where they pay into it regularly to take the sting outta the tail when buying something big!

[Bradley@BMM]

There is too much risk involved, like said above, some hobby shops NEED finance/overdrafts to pay creditors as there is not enough cash coming into the business, so why would they issue it? Just a thought

[DCM]

Originally Posted by Si Coe

I must admit, its interesting as other places that sell similar value items (in particular bike shops) do ofter such a service. So it is plausible - and yes, you do walk away with the bike and the credit agreement.
But its not the way to pay for stuff, so I'm glad they don't.......

I am sure the 'credit' is with a finance company, so the shop would get paid in full, and the customer pays the finance company?

[Bob Burr]

2 differnt things having something on credit and say paying into a christmas club eg you get the goods whan you have paid for them.
Any shop doing credit will need a credit licence (and they cost) even if its actually a seperate credit company actually doing the lending.
Yes a shop can make money by doing things on credit eg buy a £10,000 car on credit and the car dealer will get a bonus (thats why they dont do discount for cash) but buy something for £50 that wont happen.

Have been aproaced by several credit companies at my shop and all wanted to charge me for having there service, why ? it would be them who made the money in interest.

[wacattack]

Originally Posted by Bob Burr

Have been aproaced by several credit companies at my shop and all wanted to charge me for having there service, why ? it would be them who made the money in interest.

1. They are the ones who take the risk as you get paid up front
2. Any account that falls into arrears requires operational resource to chase the monies owed
3. Given the low transaction values, a high percentage of customers would pay their balance quickly hence reducing the customers paying interest
4. Some accounts will go bad and monies written off hence losses to the finance company
5. Credit may encourage higher spends in your shop hence improving your sales/profit

Need any more?

[Shaun 'TheSheep' Atkinson]

Just for the record, anything I buy R/C wise I pay for in full either in cash or using my debit card I wasn't asking because I wanted to go mad in a model shop (although you can't deny that would be cool lol) It was just an observation I had made, so was just a question of curiosity as someone pointed out other sectors of retail do have finance options for same value products, even less sometimes.