Would you buy a bike on finance?

Would you buy a bike on finance?

A recent study illustrated that over half of consumers within the UK used retail credit at some point throughout 2015 and experts predict that this will grow further in 2016. There are a number of companies now that offer 0% APR finance. This is a low cost way for the bike fanatic to purchase a high end back and justify in their own mind the benefits of the purchase. From a retailers perspective they do not need a CCL licence to offer interest free finance meaning they do not need to be authorised by the Financial Conduct Authority (FCA) whereas if they did charge interest on their lending they would. This is hugely attractive to the bike retailer as it will save them an enormous amount of time and money.

To offer finance without a CCL is hugely simple. All the dealer has to do is follow the following steps.

  •          Make sure the fee is repayable in monthly instalments and that the full balance is paid within a 12 month period;
  •          There is an agreement to fiancé the acquisition of goods;
  •          There are no arrangement fees hidden fees for the borrowings


If this is marketed by the dealer correctly it can have an enormous impact on the increase of sales and also spend per ahead, especially if accessories are also included.

The improvement of technology has made the process of applying for finance very simple. The applicant no longer needs to wade through pages and pages of paperwork they are able to apply online through a process that will take minutes and a decision will be given instantly.

Many retailers are now using point of sale finance offering as a way to grow their business by making their products more affordable and at the same time they are increasing customer satisfaction and brand awareness.

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