Forums > Kitesurfing General

Interest free kite payments !!!!!!!

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Created by dachopper 22 days ago, 30 Mar 2019
dachopper
WA, 1375 posts
30 Mar 2019 1:47PM
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Hey guys,

I notice that Oceanrodeo have started offering interest free purchases using a product called splitit.
They take any existing credit card and basically put a hold on the funds, rather than withdrawing the funds from your credit card - so the purchase is interest free, and you just pay the monthly installment for however many months you decide. According to the splitit website, you can go for up to 3 years.
There is no financing or paperwork as it uses your existing credit or debit card!

Awesome idea for paying off the new quivers! Hopefully other kite retailers jump on board - would benefit them and us !

cauncy
WA, 7044 posts
30 Mar 2019 2:23PM
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Been going for years in the uk
i worked for a company called chequespread, basically they pay retailer and you pay them
they repo if you don't or didn't pay, obviously you pay an increased rate for gear

dachopper
WA, 1375 posts
30 Mar 2019 3:31PM
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Splitit charges the merchant rather than the customer. 1.5% from what I understand

Unless the merchant jacks up the price of everything in his store " incase" they splitit - I don't see how the customer will pay more

THE PIN PULLER
WA, 266 posts
30 Mar 2019 5:41PM
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We provide it on car servicing, lift kits and all major repairs if needed. It's done through ezi pay or Lombard. Taking their loading into account it Means we have our money in the bank there and then. I May be old school but buying something and owning it is better. I think unless for depreciation etc. big believer in debt at home =bad and debt in business = good as long as we know the number. Best deals with kites I've found is to just get the cash out and give it to your local kite shop they give way better rates.

CASH IS KING STILL. Wait till the bubble bursts and there's pay day loans financing the up paid pay day pay day loan.

Its gonna be a sad state of affairs.

THE PIN PULLER
WA, 266 posts
30 Mar 2019 5:41PM
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We provide it on car servicing, lift kits and all major repairs if needed. It's done through ezi pay or Lombard. Taking their loading into account it Means we have our money in the bank there and then. I May be old school but buying something and owning it is better. I think unless for depreciation etc. big believer in debt at home =bad and debt in business = good as long as we know the number. Best deals with kites I've found is to just get the cash out and give it to your local kite shop they give way better rates.

CASH IS KING STILL. Wait till the bubble bursts and there's pay day loans financing the up paid pay day pay day loan.

Its gonna be a sad state of affairs.

Mark _australia
WA, 18959 posts
30 Mar 2019 6:35PM
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Nothing in it for them too I bet

Peahi
VIC, 1035 posts
30 Mar 2019 9:49PM
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interest rates are at all time low, moneylenders and sharks are out for anything that wil pay more than 2-3%

afterpay, payday lenders are all making a killing from the "want it now" generation, massive profits but on potentially dud credit

and by the time you pay it off, not worth much, yet so much good s/h gear available at near half price here...

I gotta watch repo man one of these days...

cauncy
WA, 7044 posts
30 Mar 2019 8:49PM
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So Kite shop wants 2k for kite
but loan provider let's you have it at 2 k interest free
what a great buisness strategy

dachopper
WA, 1375 posts
31 Mar 2019 12:05PM
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In this case - splitit do not " loan" anything
There is no lending - they are not a pay day lender

They put a hold on the credit card, and as the customer pays the merchant monthly - they reduce the hold on the card.
If the customer misses a payment, then the credit card is charged for that month so it is no risk for the merchant.
Since there is no loan, and they are using pre-approved credit card hold - there is also no risk for splitit either.

1.5% - 2% isn't much, but when the costs are almost zero it will add up.

For the business that need up front payment - the company can source lending - but this is at the merchants request and they get charged more in this case.

Kite shop wants 6K for a quiver - who has a spare 6 grand to drop? Space it over 12 months however different story. more customers, more sales.

MDSXR6T
WA, 975 posts
31 Mar 2019 1:52PM
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Select to expand quote
dachopper said..
Awesome idea for paying off the new quivers! Hopefully other kite retailers jump on board - would benefit them and us !


I think it's a terrible idea. If you can't afford a new quiver, don't buy one. Splitit might not be as bad as many BNPL companies but don't forget they are in it to make a buck. For every person who uses these payment plans successfully there's probably 2 or 3 who don't.

The people who have benefited most are those who bought in, in early February

ActionSportsWA
WA, 660 posts
31 Mar 2019 4:18PM
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Hey peeps,

i was always of the opinion that if you can't afford it, don't buy it, and we took the stance that we wouldn't "assist" people into debt they couldn't cope with. However, after a few years of missing a bunch of potential sales that went to our supplier that also offered Zip, and me asking myself why I thought I had the right to tell people how to spend their money, I rethought my martyrdom and we took on Zip Money. I was dubious and a little hesitant, but after looking into it, I was fairly impressed. We have had a customer who desperately wanted an electric skateboard and applied, but they denied him, so perhaps not the reckless lending I thought might happen.

You download the app, apply on the spot and they quickly check your ability to repay and loan you what you can afford to service.

If you use it responsibly, it can be awesome. For instance, your mid winter getaway has drained the coffers and will prevent you from purchasing your fave new kite or board at the start of the season. So you pay what you can afford, and Zip pay the shortfall. You then have 6 months interest free ie (the entire kiting season) to pay it off.

Alternatively, you buy the kite you have saved for, and spent your savings, but you notice the matching smaller kite on the wall you need to complete your quiver as you are leaving. It's a crazy good price but your coffers are dry. You can apply to Zip on the spot, get approved for $1000 and take advantage of a one off sale item. Like any form of advance, loan or credit, it must be used wisely.

It stands to reason you only borrow what you can afford to repay within the 6 months interest free period. If you do that, you get you new toys, play with them all season and pay off the balance at seasons end.

If if you are smart and use it wisely, it can be an excellent tool to get what you want, when you want it.

They usually only only lend up to $1000 without diving deep into your credit history so not much chance to get too messed up. You can request a credit raise, but I believe this takes a couple of days as they check deeper.

Retailer wins, consumer wins, and Zip only get $60 if you pay it off in time.

I think it's ok, so long as you take it easy.

DM

Peahi
VIC, 1035 posts
31 Mar 2019 9:16PM
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dachopper said..

Kite shop wants 6K for a quiver - who has a spare 6 grand to drop? Space it over 12 months however different story. more customers, more sales.


FFS who would drop 6k on new gear that will be worth 2-3k (if lucky) in a year's time??

If you have to borrow for it you cannot afford it. It's nearly winter too and 2019 models will be running out shortly, so what you buy now for full retail will be selling for 30% less in a couple of months.

But hey don't let me stop you or anyone else, shops live off people like this so go for it.

Sauce
WA, 176 posts
31 Mar 2019 6:24PM
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I'd use it but only to keep the large purchase out of the prying eyes of the boss!!

I figure, as long as you can afford it and pay it off before you are supposed to (and not incur any penalty interest) I would rather use someone else's free (or cheap) interest and keep my cash in the offset account saving that 4% against the mortgage.. Opportunity cost...

But, if you are 50/50 on paying it back. Maybe think about it a little bit before getting moist and splashing out..

Peahi
VIC, 1035 posts
31 Mar 2019 10:29PM
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Select to expand quote
Sauce said..
I'd use it but only to keep the large purchase out of the prying eyes of the boss!!

I figure, as long as you can afford it and pay it off before you are supposed to (and not incur any penalty interest) I would rather use someone else's free (or cheap) interest and keep my cash in the offset account saving that 4% against the mortgage.. Opportunity cost...

But, if you are 50/50 on paying it back. Maybe think about it a little bit before getting moist and splashing out..


I would say thats in the order of a $100-150 saving on your mortgage for a year for a $6k purchase. And you're paying extra few hundy on the gear at full retail. Seems legit.

dachopper
WA, 1375 posts
31 Mar 2019 7:48PM
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MDSXR6T said..


dachopper said..
Awesome idea for paying off the new quivers! Hopefully other kite retailers jump on board - would benefit them and us !




I think it's a terrible idea. If you can't afford a new quiver, don't buy one. Splitit might not be as bad as many BNPL companies but don't forget they are in it to make a buck. For every person who uses these payment plans successfully there's probably 2 or 3 who don't.

The people who have benefited most are those who bought in, in early February



How many people can't afford a house, and get a loan to buy one anyway;) I think it's a good budgeting tool to allow more consumer cashflow

Obviously if your happy to ride last year's model at 30% or whatever off, you can still Splitit those deals as well. I've been eyeing off a foil for a while, but man are they are crazy $$$$$$$$$$$ . I would use this option over forking over a huge fortune all at once for sure.

Sauce
WA, 176 posts
31 Mar 2019 7:52PM
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Peahi said..


Sauce said..
I'd use it but only to keep the large purchase out of the prying eyes of the boss!!

I figure, as long as you can afford it and pay it off before you are supposed to (and not incur any penalty interest) I would rather use someone else's free (or cheap) interest and keep my cash in the offset account saving that 4% against the mortgage.. Opportunity cost...

But, if you are 50/50 on paying it back. Maybe think about it a little bit before getting moist and splashing out..




I would say thats in the order of a $100-150 saving on your mortgage for a year for a $6k purchase. And you're paying extra few hundy on the gear at full retail. Seems legit.



I missed the boat with the new lay by payment systems, I dont have a clue what they are or how they work.
Generally always a cash man until someone showed me what a balance transfer was.. so I took out the highest bonus point frequent flyer card with a free year membership and bought my stand up paddle boards and a few other things (council rates).. then chucked it all on the balance transfer..

No mark up for vendor services that way. For some reason the bank gave me 6 xfers for 12 months each time, Im not arguing.. I cut the credit card up the day I got it so as to not risk using it.

Also got rid of the FF card before the 395 dollar fee came in for the second year.

I would like new kites this year but 6k even pushes my frugalness.

eppo
WA, 6915 posts
31 Mar 2019 8:14PM
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Sauce said..
I'd use it but only to keep the large purchase out of the prying eyes of the boss!!

I figure, as long as you can afford it and pay it off before you are supposed to (and not incur any penalty interest) I would rather use someone else's free (or cheap) interest and keep my cash in the offset account saving that 4% against the mortgage.. Opportunity cost...

But, if you are 50/50 on paying it back. Maybe think about it a little bit before getting moist and splashing out..



Yep and yep on the opportunity cost.

MDSXR6T
WA, 975 posts
31 Mar 2019 11:14PM
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dachopper said.
How many people can't afford a house, and get a loan to buy one anyway;) I think it's a good budgeting tool to allow more consumer cashflow

Plenty of people, however the banks look a lot deeper into who they are lending money to.

Splitit, afterpay, zip pay, oxipay, openpay etc are all relying on users getting so much stuff on credit that they eventually cant make repayments and they can then make their money in interest and fees. It's a win win for them as they have already got a percentage from the original sale.

A free, overseas interest free app thats a budgeting tool and allows consumers better cashflow.... allmost sounds too good to be true and i know a lot of people use these BNPL services that don't have any problems but its an easy way to target those who can't afford stuff.

If you want next seasons kites, why not walk into a kite shop in late summer, set up a traditional layby, pay it off over winter and at the start of the season you can sell your existing kites to cover the difference.

A bit of communication and common sense will see both parties happy and no one pays a single cent to a 3rd party.

In saying that, a $500 gamble might get you a new quiver next summer if it keeps trading well. ASX:SPT

Plummet
4382 posts
1 Apr 2019 2:19AM
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I paid a kite off on layby recently. Man I regret that .Every month I had to with stand the same disappoint and annoyance from the missis when she saw the payment go out.

Even though I explained it in detail the first time and Everytime after that. ......

Next time I'll just buy the bloody kite and take the rage for the full amount once.

AndreC
WA, 463 posts
1 Apr 2019 9:24PM
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Cashflow is KING....besides drip feeding payments means less likely the MRS will notice the NEW Toys..I think about it like $30 a week means you can change over to new kites every season...instead of scratching around to put together 4K.

glasstraxx
WA, 285 posts
2 Apr 2019 12:16AM
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we are in 2019 right? this kind of thing should be standard!

wishy
WA, 1340 posts
2 Apr 2019 11:13AM
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I hope that when I die, people say about me, 'Boy, that guy sure owed me a lot of money. - Jack Handey

Flatop
3 posts
2 Apr 2019 1:36PM
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MDSXR6T said..

dachopper said.
How many people can't afford a house, and get a loan to buy one anyway;) I think it's a good budgeting tool to allow more consumer cashflow


Plenty of people, however the banks look a lot deeper into who they are lending money to.

Splitit, afterpay, zip pay, oxipay, openpay etc are all relying on users getting so much stuff on credit that they eventually cant make repayments and they can then make their money in interest and fees. It's a win win for them as they have already got a percentage from the original sale.

A free, overseas interest free app thats a budgeting tool and allows consumers better cashflow.... allmost sounds too good to be true and i know a lot of people use these BNPL services that don't have any problems but its an easy way to target those who can't afford stuff.

If you want next seasons kites, why not walk into a kite shop in late summer, set up a traditional layby, pay it off over winter and at the start of the season you can sell your existing kites to cover the difference.

A bit of communication and common sense will see both parties happy and no one pays a single cent to a 3rd party.

In saying that, a $500 gamble might get you a new quiver next summer if it keeps trading well. ASX:SPT


Your thoughts on Afterpay etc waiting for someone to default so they can hit with the high interest is incorrect.

The worst thing for these companies is exactly that, it means they have to pay someone to chase you up (added cost) or even worse come and seize the goods (again added costs). A lot of times like with Mortgage and lendings if you can't make payments these companies/banks will happily work something out that's an affordable repayment rate obviously slightly higher then what you had before. I know this because a member of my family had trouble repaying one of these after pay services due to sudden loss of work. After a phone call to them saying she wasn't going to meet the deadline they happily worked out a restructured plan in which she ended up paying a bit more but everyone was happy.

the aim of these companies isn't to strike it rich by crippling people with debt. The idea is that the $10 service fee is paid by thousands of people each month on small loans meaning they can loan pretty much risk free (doesn't exist I know but they're close to it) and make a killing on the $10 fees for outstanding amounts. It doesn't sound like a lot but neither does a dollar till you got a million of them sitting round.

eppo
WA, 6915 posts
2 Apr 2019 2:51PM
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so what was you other 1 post about FLATOP? -

Flatop
3 posts
2 Apr 2019 4:22PM
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eppo said..
so what was you other 1 post about FLATOP? -


Might have been the one about Core kites I think big fan of the kites, the bar not so much. No need to drool nonsense on forums, only bother commenting if i feel i have something worth sharing

eppo
WA, 6915 posts
2 Apr 2019 9:15PM
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Awesome. Just checking we haven't got a fly in the soup.

dachopper
WA, 1375 posts
2 Apr 2019 9:47PM
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Surely there is 1 Australian kite retailer willing to give this a go !!!! They just offered it on an electric skateboard company ! www.blackhawkelectric.com.au

EastCC
QLD, 275 posts
3 Apr 2019 5:57AM
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The Ocean Rodeo Split- it is processed with your local dealer if they are an OR dealer. So you pay through split-it, the Australian dealer gets the coin and you collect your gear from them.
You can 0% interest finance you're whole purchase, no $1000 limit like afterpay and no fees.

if it's not for you don't do it, easy.

NorthernKitesAUS
QLD, 730 posts
3 Apr 2019 4:16PM
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Plummet said..
I paid a kite off on layby recently. Man I regret that .Every month I had to with stand the same disappoint and annoyance from the missis when she saw the payment go out.

Even though I explained it in detail the first time and Everytime after that. ......

Next time I'll just buy the bloody kite and take the rage for the full amount once.




Oh no,... yeah man I feel you. Same here. I get slapped if I spend even $20 without telling her why! It's ridiculous, which is why I save the dosh on the side and buy and get it delivered at work. What she doesn't know, won't hurt... err.. me!

But I'll bite ... .. how best to buy a Flysurfer Soul 12m complete?



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"Interest free kite payments !!!!!!!" started by dachopper