Exposing the secrets of the double glazing industry.

0% Finance

Truth about 0% Finance

Truth about 0% Finance

To try and sell you their products, many double glazing companies will offer finance. Customers find this an attractive offer as they can get their products quickly, paying them off every month instead of having to wait until they have the total amount saved. While not all finance is bad, there are a few things to consider before making a decision.

Firstly, it is essential to note that most finance will cost you money. Whether it is a credit card or a loan, the customer will pay interest on the balance that they owe for the convenience of having the money upfront and help reduce the credit lender’s risk. When some companies offer 0% finance, this is often a trick to make you think that it is a safer option.

A salesperson will often ask how you are paying before giving you any quote. This is because the ‘finance’ price for a product is usually much higher than the cash price. This is how the ‘0% interest’ claim can be made. If the cost of credit (the interest) is, for example, £1000 over five years, the price has to go up by at least £1000 from the start, without you noticing. Then because you’re already paying the interest (the extra £1000 on the price), they can claim to be offering it on 0% terms. In other words, the interest has been hidden in the purchase price.

Additionally, be cautious if the salesman is pushing you to use their finance option as often they gain extra commission if they sign you up to it. Take your time when deciding how to pay as finance, even if marketed as 0%, will cost you more in the long run.