Buying Jewellery On Finance: 5 Important Considerations
Buying jewellery on finance has grown in popularity over the last 15 years, to the point where it now makes up for a significant portion of sales in the industry. There are many reasons for this, such as the financial impact of the 2008 recession, the ever-increasing price of gold, and the fact that finance payments can make a big purchase more manageable.
Of course, as fine jewellery is typically a high-value product, it’s important to make additional considerations before following through with your purchase. In this blog post, we highlight five important considerations before buying jewellery on finance.
What repayment period is most suitable for me?
When buying fine jewellery on finance, you’ll be presented with several repayment periods that usually vary from six months up to four years. Choosing a longer repayment period can allow you to afford a more expensive piece, however, the longer your repayment period, the higher the interest rate will generally be.
Some jewellers offer interest-free repayment periods up to a certain length of time; here at Hatton Jewellers, we offer 0% interest-free finance options on repayment periods up to 12 months.
Is this definitely the piece that I want?
As jewellery is often an expensive purchase, it’s important to put some proper thought into exactly which piece you want. After all, there’s no point rushing into buying a luxury Swiss watch on finance, only to find another watch that you prefer two days later.
If you haven’t already, we’d recommend taking some time to research tips and tricks for buying jewellery online, as this can be very useful in helping you to learn more about finding the piece that’s right for you. For example, if you want to buy an investment piece, you may learn that you can get more for your money with a solid gold bracelet or chain, as they typically require less labour than other types of jewellery.
Is it within my budget?
Finance is great as it can allow you to buy jewellery that you wouldn’t necessarily be able to afford upfront, by spreading your payment over a time period that suits you. However, it’s still very important to ensure that you can afford your monthly repayments.
It can help to work backwards by calculating how much you can afford to pay each month, which will in turn allow you to determine how much you can spend on a piece of jewellery. For example, a 0% interest-free purchase on a £600 engagement ring, over a 6 month repayment period with a 10% deposit, would look like this:
- Total order value = £600
- 10% deposit = £60
- Total amount of credit = £540
- Representative APR = 0%
- Interest charged = £0
- 6 monthly payments of = £90
- Total amount payable = £600
Are there any other finance options?
A standard finance credit application isn’t the only option available when it comes to buying jewellery. Another highly popular option is the 90-day layaway plan. This simply requires an initial 25% deposit on your item, then you pay off the remaining balance over the next three months, as and when it suits you.
With 90-day layaway plans, as soon as you make the deposit, your jewellery is secured by the jeweller to ensure that nobody else can buy it. Once you’ve paid the balance in full, your item(s) will be dispatched with next day delivery.
Am I buying from the right jeweller?
Last but certainly not least, it’s so important to make sure you’re buying from a trustworthy jeweller when applying for finance. After all, you don’t want to commit to a 12 month repayment period only to discover that you’ve bought low-quality jewellery or that the retailer has awful customer service.
The most surefire way to protect yourself is to buy from a professional Assay Assured jewellery retailer, rather than from eBay or Facebook Marketplace. It can also be useful to read the jeweller’s Trustpilot reviews to see other customers’ experiences with them. Finally, have a look on their website to see if they offer additional post-sale services such as a returns policy, online live chat customer service, jewellery repairs and so on.
For more articles like this, why not check out the Hatton Jewellers blog?