How to buy a washing machine on an installment plan
Is your washing machine broken and you can't afford a new one? There's a solution: buy it on an installment plan. Stores offer a variety of terms for installment plans and loans, which are the most popular consumer loans today. Let's discuss how to set up an installment plan without getting scammed.
What does it mean to buy in installments?
Buying a washing machine on an installment plan means paying for it in equal installments, at regular intervals, without paying interest. Simply put, there are no overpayments or interest charges with an installment plan. This is its main difference from a loan.
An important difference between installment plans and loans is that they must be processed by a store employee (manager or salesperson), while loans are processed by a bank employee, who may be located in the same store. The bank acts as an intermediary between the store and the buyer, and therefore, it will pay a percentage of the transaction. In rare cases, the store will assume the interest payment. However, even in this case, be careful, as there may be no overpayment, but the item will still cost several thousand more than a similar product in another store.
Please note! Unlike a bank loan, an installment plan is issued for a short term and a small amount, so you should be prepared to repay the installment plan.
Typically, installment plans are available for 1-10 months for purchases up to $1,500, but there are exceptions. Some stores offer installment plans on certain items as a special offer on specific days. As for the down payment, its size is determined by the store, and for installment payments it can be 0 - 50% of the original price of the washing machine. The installment plan application process is faster, as you don't need to prove a good credit history or provide a package of documents.
What is the benefit?
Undoubtedly, installment payments, as a transaction between seller and buyer, are beneficial to the buyer. Its advantages include:
- You receive a washing machine at this point in time and use it, and pay for it gradually in small installments;
- you don’t have to overpay for the product;
- the transaction is completed quite quickly;
- You have the opportunity to buy a washing machine without a down payment;
- There is the option to choose a washing machine in an online store and purchase it in installments online;
- You don't need to provide the seller with proof of income or look for guarantors.
But when deciding to purchase in installments, remember:
- The store has the right to refuse to sell a washing machine on an installment plan without explanation;
- installment plans are not available for very expensive goods;
- installment plans may not be offered for all washing machines, or for a limited number of them;
Important! To qualify for an installment plan, it's best to contact the store at the beginning of the month. This is because stores are required to accept a certain number of installment purchases if they offer this service.
- the price of washing machines sold on an installment plan may be inflated;
- Payments must be made strictly on the date specified in the contract; otherwise, the store may impose a fine and refuse to allow future installment purchases.
What is needed for the deal?
To complete a transaction directly at the store, you only need to have your passport with you. In rare cases, the seller will ask for additional identification, such as a pension card, driver's license, or international passport.
Important! Only Russian citizens aged 23 to 70 who are permanently employed, registered, and residing can purchase a washing machine in installments.
When concluding a transaction, an agreement is drawn up, which specifies:
- personal information about the buyer (full name, address, place of work) and information about the seller (legal name and address);
- obligations of the parties and their responsibilities;
- model, serial number and price of the washing machine;
- signatures of the parties.
When signing a contract, you should carefully read all clauses, including footnotes and notes, which are usually written in fine print. They may include insurance and other fees that the seller hasn't disclosed. Also, check with your bank to see if you can make installment payments to avoid any fees. Online payment is also possible.
Tip! When completing the transaction, cancel the insurance service after the bank approves your installment plan application; otherwise, your application may be rejected. And don't forget to opt out of SMS messaging by checking the appropriate box.
Once the transaction is completed, the seller must give you:
- one copy of the installment purchase agreement;
- warranty card;
- cash receipt.
When making a transaction online and having the item delivered to your home, the listed documents must arrive with the item. When picking up the washing machine in person, the transaction is confirmed by the store's credit department, and the documents will be given to you in person.
What conditions do stores offer?
Washing machines can have not only different installment prices but also completely different terms and conditions at different stores. Here are some examples from some of the country's most well-known stores.
So, buying a washing machine on an installment plan should be carefully considered, and you should remember to honor your payment obligations on time. Be careful, and you'll truly get a good deal without overpaying.
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Washing machine repair
For buyers
For users
Dishwasher
Is it possible with a temporary registration?
Is it possible to cancel a contract for the purchase of a washing machine on an installment plan if the goods have not yet been received and the down payment has not been paid?