Consumer FAQs
I am confused by the barrage of credit agreements that seem to be available. How do I know that I am getting the best deal?
The first advice is to shop around, however it is difficult to make comparisons when you are not sure what you are looking at! If at all possible, take the time to calculate exactly how much you will be paying back, you might be horrified at the total amount and wish to postpone your purchase. Do not be pressurised by keen salespersons who try to make you sign an agreement on the spot, give yourself time to think, the deal will still be there in a few days time. If it is not, then be suspicious.
I have enough money to buy a car outright but all the salespeople keep telling me to keep my money and take out credit and pay for it monthly. Does this advice make sense?
Well it might, but you have to compare the rate of interest you are getting on your savings with the interest you will have to pay for the car outright if you are in the fortunate position of being able to do so.
Are extended warranties a good idea?
The danger lies in being sold a warranty that offers little more than to which you would be entitled under statutory provision. You would need to ask questions to evaluate the benefits offered. Recent changes to the Sale of Goods Act prescribe that goods should be of satisfactory quality. One factor to be taken into account is the durability of goods. Failure to supply goods of reasonable durability would constitute a breach of contract which should be put right irrespective of any extended warranty.
If I take out a loan should I also take out a protection policy to give me peace of mind if I cannot pay for some reason?
You should check very carefully to see if you would be covered for all the likely eventualities that may befall you. For example some occupations are expressly excluded. Similarly if you are unemployed it is of little benefit to take out insurance that protects you against sudden unemployment.
Last updated: March 21, 2007