Ride it away offering gets even stronger with interest free ‘Buy Now Pay later'
Posted on in Cycles News
Customers can now enjoy their new bike before they start to pay for it with the new Ride it away ‘buy now pay later' product!
The opportunity to defer payment is a great way to make larger purchases more attractive, particularly at a time of year when customers may not otherwise be able to afford what they really want. With this option, customers can 'buy now pay later' with up to 6 months payment-free, after which they pay back in interest free monthly repayments, just like they would with standard retail finance.
Launching in time for the August bank holiday, Ride it away retailers will be able to offer their customers the option to buy now with a minimum 10% deposit and pay nothing else for 3 or 6 months. After 3 or 6 months they'll pay the remaining balance on 0% APR over 12 or 18months.
The buy now pay later finance option is available for limited periods only, and available only on purchases over £1000 (unlike the minimum £280 minimum purchase for other finance options). This product is designed to help push premium bike sales at a time when customers may be watching their spending. It should be used alongside a retailer's usual finance offering to give customers even more of an incentive to buy immediately, rather than coming back when they have the money in 6 months' time - helping the retailer secure the sale the same day and get their money sooner.
This works especially well for the launch of 2017 models from September onwards, giving customers the option to buy the 2016 model on finance (with an interest bearing APR to allow retailers to offer discounts and still protect their margins) or to get the new 2017 model on 0% finance with no repayments for 3 or 6 months. Knowing that they will be able to ride a brand new 2017 bike out of the shop the same day but not to have to worry about paying for it until the New Year is the perfect way to allow customers to get what they really want.
The buy now pay later option will be available from 20th August in time for the bank holiday weekend and will be live until the end of November. This allows retailers to protect their usual sales over the Christmas period and the start of the New Year when finance sales are at a high. The buy now pay later option will then be re-introduced around Easter 2017 for a limited time to boost sales before the busy summer period and will continue to be made available at specially selected periods throughout the year.
Since the buy now pay later product extends the 12 month payment term by 3 or 6 months, this offering is only available to retailers with FCA authorisation.
For retailers currently only offering 0% finance over 6, 10 or 12 months, now is the perfect time to apply for FCA authorisation to start offering ‘buy now pay later' and access the full range of APRs and term lengths designed to reduce subsidy costs, protect margins and give customers even more choice.
Contact ACT today to discuss getting FCA authorisation. We offer full guidance through the application process.
Already have FCA authorisation? To access the buy now pay later option from the end of August, retailers will need to opt in via V12. Email salessupport@v12finance.com with your shop details, requesting the ‘Buy Now Pay Later' option, or call 02920 468 918.
Not yet a Ride it away dealer? Contact ACT today on 01273 427 700 or info@theact.org.uk to find out more and get an application pack in time to take advantage of this brand new finance offering.