Option to pay monthly becoming 'very valuable' to consumers
Posted on in Cycles News
The need to be able to spread the cost is becoming more important to consumers.
Being able to pay for goods over a longer period of time, or to defer payment is a great way to make larger purchases more attractive for your customers, and the appetite for buying on finance is certainly growing. In a 2016 UK Consumer Payment Study, the percentage of consumers who found the prospect of paying in instalments ‘valuable' or ‘very valuable' rose 7% from 2015.
More and more big name brands are starting to appeal to their customers' desire to spread the cost, with ‘Buy Now Pay Later' options and payment plans becoming commonplace on the high street.
Arcadia Group, which owns brands such as Topshop, Dorothy Perkins, Miss Selfridge and Burton, has just launched a new credit scheme across its online channels offering customers the opportunity to defer payment interest free for up to 90 days.
Luke Griffiths from Arcadia's finance partner Klarna, calls the new Buy Now Pay Later option an ‘innovative solution to one of the biggest challenges UK retailers face'.
As well as Arcadia, Toys R Us have recently announced the new 'Take Time to Pay' plan, allowing families to buy whatever they want now and gradually pay if off before December 25.
As more high street brands start to offer a bigger range of payment options, it is becoming more necessary for retailers to look at the payment options they offer to ensure they can compete.
Launched last month, the Ride it away Buy Now Pay Later product is a great way for independent retailers to be able to offer the same payment options as the bigger players in the retail market.
Unlike traditional high cost Buy Now Pay Later products where the customer is often unaware of the hidden settlement costs, our deferred payment product developed with V12 is new to the cycle sector in that it offers two benefits significant benefits - it is truly interest fee and the customer repayments won't start until after Christmas - a significant sales tool to drive up the early sale of 2017 models.
With the Buy Now Pay Later product, retailers are 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.
This payment 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.
To find out more click here, or contact us today.
Already have FCA authorisation? To access the buy now pay later
option 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.