finance question?

[Murphy]

The airgun centre is doing finance on rifles.

What if someone buys a very expensive rifle on finance then almost immediately sells it on here for example.

Then doesn't pay the finance.

Is the finance in anyway linked to the rifle like cars or is it solely on the person getting finance?

Or even if they continue to pay the finance is the rifle still technically not the buyers property?

Just something I wondered.

[Jonjon79]

It'll be against the person that took out the finance - think of it like a loan and you used the money to buy a rifle.

[Murphy]

It'll be against the person that took out the finance - think of it like a loan and you used the money to buy a rifle.

That's what I assumed but thought I would ask.

[Mr. Gen]

It'll be against the person that took out the finance - think of it like a loan and you used the money to buy a rifle.

which is exactly what it is.

you will end up with a CCJ which over 25 years (your high rate mortgage payments) will cost a lot more

[Chippendale]

I would have thought that the gun would be the property of the finance company until it is fully paid for, If payment to the finance company stopped wouldnt they claim the gun?

Chippendale (with clothes on)

[TonyL]

It all would depend on how the agreements are written, ie, if they are Hire Purchase agreements the good remain the property of the lender until the last payment is made / agreement settled early. If they're written as Personal Loans the lender has no title to the goods.
I've never looked at these agreements so wouldn't know what umbrella they come under. Guessing they would be personal loans, as mentioned higher up the thread. I've worked with automotive agreements for donkeys' years and we have things like HPi at our disposal to check, amongst other things, whether a vehicle is subject to a finance agreement. Guessing nothing like this will exist for guns, making me think even more that they will be personal loans.
I suppose the easiest way to check is to talk to a shop that offers credit as they will have to tell you all the ins and outs - type of agreement, interest rates etc., as they'll be bound by the FCA to do so and to be qualified to offer advice.

[rapidresponse1]

agree with what your saying tony

[derekm]

If it can't be afforded today, wait until it can be. It still has to be paid for and may well cost a lot more on credit.

[Kevmcc]

Some people don’t care about the future and just try to rip as many people off that they can in a short or long time period. They think there above everything until they decide to change there life around some years down the line and it all catches up with them. Really sad but that’s the state of this world now luckily it’s just the few and not the majority that do it.

[Murphy]

If it can't be afforded today, wait until it can be. It still has to be paid for and may well cost a lot more on credit.

They offer a 12 month interest free option.

I have bought loads of things on interest free over the years.

But I agree for 20% interest it’s crazy using finance on luxury’s!

[derekm]

If they offer 12 months interest free, will they give a discount for cash? Interest free is free to the customer but not to the shop.

[Murphy]

If they offer 12 months interest free, will they give a discount for cash? Interest free is free to the customer but not to the shop.

I’m pretty sure it’s illegal to offer a different price for finance.

[derekm]

I’m pretty sure it’s illegal to offer a different price for finance.

I didn't mean that. Assume the gun was listed at £500 and the shop offered interest free credit. One way or another, that is going to cost the shop, so they could well be willing to give a discount on the list price for getting immediate payment in full.

[TonyL]

Ah, but it amounts to the same thing, Derek. They're not allowed to "dual price", so the price has to be the same whether the customer is paying in full or via credit. Let's say it's a £500 purchase and it might cost the shop £50 to subsidise the cost of offering the 0%. Customer says he will pay cash and the shop says they will give £50 discount. If that customer then turned round and demanded the lower price AND the 0%, the shop would have to honour this = shop loses out.

[Avalon-One]

If the finance is secured against the asset, it belongs to the finance provider till paid for in full. If it isn’t, then it’s with the individual who took it out. Also consider that while in most cases the store may be subsidising the 0% offer, in other models the finance provider will pay the shop a commission for introducing the customer, the car industry for example is usually based on this. It’s just another way of keeping cash flow going vs invoice factoring.

which is exactly what it is.

you will end up with a CCJ which over 25 years (your high rate mortgage payments) will cost a lot more

Given a CCJ is only on your credit file for a maximum of 7 years and lenders only check when evaluating you for new offers/lending, that isn’t really likely. It may prevent you from receiving a new discounted rate offer, but SVR is low and without enforcement or acknowledgment of the debt from the debtor it’s a bit of a non event, most just flog the debt to a 3rd party collection service and let them have a run at it, they pay penny’s on the pound and aim to make money by recovery and fees. I speak as someone who had customers who owed money and who got reasonably good at getting it back and learning how the game was played. It’s easy and cheap to avoid debt, it’s neither easy or cheap to enforce it and you have no guarantee of being able to get anything even if you do.