PDA

View Full Version : Afterpay



Infsub
30-10-2017, 01:00 PM
Just a suggestion. Why don't you talk to the people at afterpay or even zip money about setting up their payment plans.
This would allow me to buy more kits more often.....win win win

Zandit75
30-10-2017, 01:05 PM
I haven't looked into myself, but is there the same protections for both parties in the event of non payment/supply as there is with Paypal?

teamjeffo
30-10-2017, 01:05 PM
Fantastic idea

FrankenWashie
30-10-2017, 01:19 PM
oooooh this would be such a baaaaaad idea for me.....

wazkelly
30-10-2017, 01:30 PM
oooooh this would be such a baaaaaad idea for me.....From a lender's perspective they have an unfavourable opinion of zip money, etc as they believe it is an indication of hardship, same as pay day lenders like Nimble, and the use of such has a big negative impact when applying for larger loans for cars or houses.
Not criticising, just work in finance and sharing insider knowledge for others to be cautious using small loan facilities. Most times people are better off getting a credit card instead.

Sent from my SM-A520F using Tapatalk

FrankenWashie
30-10-2017, 02:01 PM
From a lender's perspective they have an unfavourable opinion of zip money, etc as they believe it is an indication of hardship, same as pay day lenders like Nimble, and the use of such has a big negative impact when applying for larger loans for cars or houses.
Not criticising, just work in finance and sharing insider knowledge for others to be cautious using small loan facilities. Most times people are better off getting a credit card instead.

Sent from my SM-A520F using Tapatalk

Yeah, even if it were an option, I'm not sure that i would bother. its a little sad that use of a facility like nimble or Zip attracts a negative view from larger lenders. One would have thought that a simple loan like that, paid back in full on time should count as a positive unless it was happening on a monthly basis?

wazkelly
30-10-2017, 02:06 PM
Yeah, even if it were an option, I'm not sure that i would bother. its a little sad that use of a facility like nimble or Zip attracts a negative view from larger lenders. One would have thought that a simple loan like that, paid back in full on time should count as a positive unless it was happening on a monthly basis?I see so many young ones who use those and cash converters too not realising that it dramatically downgrades their ability to get car finance. Most do it because they don't have a credit card.

Sent from my SM-A520F using Tapatalk

king casey
30-10-2017, 02:07 PM
. its a little sad that use of a facility like nimble or Zip attracts a negative view from larger lenders.

From personal experience, the only way I could get a loan from the bank was to prove that I didn't need it.
No wonder this hole appeared in the market.

cheers, Mark.

wazkelly
30-10-2017, 02:09 PM
From personal experience, the only way I could get a loan from the bank was to prove that I didn't need it.
No wonder this hole appeared in the market.

cheers, Mark.Sad but true.
We can all blame the Responsible Lending Act for most of this.

Sent from my SM-A520F using Tapatalk

FrankenWashie
30-10-2017, 02:09 PM
I see so many young ones who use those and cash converters too not realising that it dramatically downgrades their ability to get car finance. Most do it because they don't have a credit card.

Sent from my SM-A520F using Tapatalk

Now there is something useful they could teach in high school economics....if only.

wazkelly
30-10-2017, 02:10 PM
Now there is something useful they could teach in high school economics....if only.Yeah, teach some useful lifeskills for a change.

Sent from my SM-A520F using Tapatalk

king casey
30-10-2017, 02:19 PM
I was told that if you want to buy something expensive you diligently saved up and bought it.

Rather than viewed as financially 'responsible', I was instead seen as a financial leper.
My account balance would be up and down like George Pell's cassock.

cheers, Mark.

adam
30-10-2017, 05:09 PM
I thought I did a Post on this a couple of months ago, but couldn't find it... maybe I dreamed it?

I've been bombarded with offers for after-pay services (ZIPpay, AfterPay, etc) and I think I am on the same page as the consensus here.

It's a service that traps younger buyers and could seriously impact their finances in their late teens, early 20's... as it did for me.

I bought a Yamaha Amp when I was 17 (and at TAFE) on "Hire Purchase", yes I'm that old. I think I was still paying off the obscene debt in my mid 20's.

So, I won't be adding it anytime soon, even though it would clearly boost sales and probably be convenient for some responsible buyers*.

The average price of our kits is $200... if you can't afford that outlay, just wait until you can. Or, look out for a cheap guitar (garage sale, eBay, Gumtree, etc) that you can have a play with and do it up, to hone your skills.


*We do offer an informal Lay-by service, where you can order a kit, or other product, and put a deposit on it by Direct Deposit (Bank Transfer). Then, you just pay off the balance when you can... weekly, monthly, whatever. I've done this for a few customers and it has worked well. It's just a bit harder for International customers.

B'Lark
31-10-2017, 11:46 AM
*We do offer an informal Lay-by service, where you can order a kit, or other product, and put a deposit on it by Direct Deposit (Bank Transfer). Then, you just pay off the balance when you can... weekly, monthly, whatever. I've done this for a few customers and it has worked well. It's just a bit harder for International customers.

HMMM.... I think I might have to hit you up on this at some stage. Would doing this be possible for a customised kit too?

adam
31-10-2017, 02:43 PM
HMMM.... I think I might have to hit you up on this at some stage. Would doing this be possible for a customised kit too?

Hi B'Lark, yes, as long as it's not something too "out there" and we could sell it, if you changed your mind.

Send the custom order to the customshop(at)pitbullguitars(dot)com address and we can provide a quote.

We are working on the March order now, so plenty of time to spread out payments.

Infsub
31-10-2017, 03:31 PM
Thanks for all the replies.

I am not aware of afterpay hurting your credit rating. It is just like lay-by. Big w. Office works kmart all use it even the other Australian guitar kit supplier uses it. (nimble is a pay day lender and yeah you will get in trouble there pretty quick)

It is not about save up etc it is about 50 a fortnight instead of 200 plus up front that the minister for war and finance whines about . Haha.

I have never spent just 200 on a guitar here. I get the kit and replace the hardware and put in Duncan's or dimarzios, add to that the finishes etc and I doubt any guitar I have finished came in under 500.

I have used afterpay and zip money and can still get home and car loans never been an issue.

I purchased 7 guitars from pitbull in last 12 months... If afterpay was an option that number would at least be double.

Andy40
31-10-2017, 04:40 PM
7 guitars from PBG and only 11 posts!!!:eek:

Dedman
31-10-2017, 04:40 PM
I just use my 55 days interest free on my CC :D

wokkaboy
31-10-2017, 04:47 PM
nice work Infsub, 7 guitars in less than 12 months is a good effort. Would love to see a pic of some of your builds. You would be doing well to build 14 axes in that time !

wazkelly
31-10-2017, 06:06 PM
Thanks for all the replies.

I am not aware of afterpay hurting your credit rating. It is just like lay-by. Big w. Office works kmart all use it even the other Australian guitar kit supplier uses it. (nimble is a pay day lender and yeah you will get in trouble there pretty quick)

It is not about save up etc it is about 50 a fortnight instead of 200 plus up front that the minister for war and finance whines about . Haha.

I have never spent just 200 on a guitar here. I get the kit and replace the hardware and put in Duncan's or dimarzios, add to that the finishes etc and I doubt any guitar I have finished came in under 500.

I have used afterpay and zip money and can still get home and car loans never been an issue.

I purchased 7 guitars from pitbull in last 12 months... If afterpay was an option that number would at least be double.Things have tightened up a lot in past 3 - 6 months. The frequency of enquiries on a customer's credit file affects their score which is a number between 1 & 1200. Somewhere north of 600 is preferred whilst 400 or under will be declined by most mainstream rate acceptable lenders.
For those who don't care about high rates there are some players in the market who may consider low scoring applicants.
Earlier this month I had an application kicked to the kerb due to a dim view of a deal with a recent Zip Money enquiry on the credit file. There may have been other factors too but not the first time that type of enquiry on credit file has tripped things up.
After Pay looks like it would generate credit enquiry and therefore not a genuine layby type transaction.
Bottom line is where anything requires a credit report, it remains there for 5 years and when there is a cluster of enquiries it can downgrade credit score.
People need to be more aware how easily this can now impact their credit score.

Sent from my SM-A520F using Tapatalk

adam
31-10-2017, 07:55 PM
Thanks for all the replies.

...

I purchased 7 guitars from pitbull in last 12 months... If afterpay was an option that number would at least be double.


Hey Infsub, I hope you don't mind that I looked up your details to check you weren't spruiking for one of the Afterpay companies.

Yes, you are indeed a valued customer and we have spoken many times on email. I thank you for your repeat business.

I think you are the epitome of the "responsible buyer" I mentioned.

Infsub
01-11-2017, 10:54 AM
Thanks Adam. Haha no way am I linked to any financial institution. I am just addicted to building and playing guitars.

Yeah I have posted pics of some builds under my introduction via a hosting site.

My afterpay suggestion was just that. I plan on building and giving away several guitars for x mas and paying them off over a month without having to wait sounded good. (also a couple for myself)

I do have a credit card with a very high limit that I could use but I don't like to use credit cards.
When all is said and done I am just a typical Scotsman and don't like to spend money all in one hit although it is within my means and I am spending up big upgrading my home studio.

teamjeffo
01-11-2017, 11:58 AM
Thanks Adam. Haha no way am I linked to any financial institution. I am just addicted to building and playing guitars.

Yeah I have posted pics of some builds under my introduction via a hosting site.

My afterpay suggestion was just that. I plan on building and giving away several guitars for x mas and paying them off over a month without having to wait sounded good. (also a couple for myself)

I do have a credit card with a very high limit that I could use but I don't like to use credit cards.
When all is said and done I am just a typical Scotsman and don't like to spend money all in one hit although it is within my means and I am spending up big upgrading my home studio.

Ha! My wife’s Scottish and she has no problem spending all our money at once!

adam
01-11-2017, 08:06 PM
Thanks Adam. Haha no way am I linked to any financial institution. I am just addicted to building and playing guitars.
...
When all is said and done I am just a typical Scotsman and don't like to spend money all in one hit although it is within my means and I am spending up big upgrading my home studio.

I can relate, my nickname when I lived in Melbourne, years ago, was "Scotty"... for similar reasons.

I think an AfterPay type facility would be great for this business and for customers like yourself, but it does concern me that it will trap some younger buyers and cause them hardship down the track.

Will give it some more thought.

Mr.Drifter
02-11-2017, 12:56 AM
I can relate, my nickname when I lived in Melbourne, years ago, was "Scotty"... for similar reasons.

I think an AfterPay type facility would be great for this business and for customers like yourself, but it does concern me that it will trap some younger buyers and cause them hardship down the track.

Will give it some more thought.

Might be worth talking to the people, and if you do decide to go through with it, put up some warnings on it (if they let you), so poeple know what they're getting into.
Especially stuff like the lump interest you get slapped if you don't pay it off before the due date, and what not. Of which those things aren't hidden, but aren't that easy to find for some. But, there is one that's limited to a small amount, which you could possibly talk to them and make it like $400 or something max, so they can only get one kit, and it's a small amount to pay back or something

Infsub
05-11-2017, 12:13 PM
The way it works is 4x fortnightly payments. So 25 a week for $200. If paid off in two months there is no more to pay if not paid off in 2 months there is a five dollar fee for each month the balance is outstanding.
So it is not like ge money or any hire purchase deal. They don't ask for pay slips or bank balances or any financial details. It is essentially lay-by but you get the goods right away. It is limited to 200 dollars on first purchase then 500 dollars on future purchases.

www.afterpay.com has all the info.

adam
12-11-2017, 06:59 PM
That all sounds pretty reasonable Infsub, I'll check it out more closely.

Dedman
12-11-2017, 07:29 PM
So , how does Afterpay make money then? Making $5 a month if someone doesn't repay on time and nothing if they do is a poor investment of their money.
Is curious.

adam
13-11-2017, 06:01 AM
So , how does Afterpay make money then? Making $5 a month if someone doesn't repay on time and nothing if they do is a poor investment of their money.
Is curious.

I imagine they take a percentage "fee" from the seller, as does PayPal and ANZ eGate.

christodav
16-11-2017, 05:23 PM
ZipPay only allows up to $1000- of credit to the customer. The minimum repayments are $40 p/m and there is a $5- per month account keeping fee which is charged on the 1st of every month. It is interest free to the customer forever provided they pay the $40- per month or more. The seller is charged around 1.5% I believe. The purchaser only needs to be over 18 and have a Paypal or Facebook account to be approved. (Zip Money is a traditional 6 months interest free product.)

Personally, I would rather purchase using a Zip Pay type product over a credit card.

I only know about this as I work at a major retailer who has recently taken on these products. I think Zip Pay would work well on your site. I don't know anything about any other products such as Afterpay.

Chris

Rabbitz
18-11-2017, 01:39 PM
Hey Adam, while you are making your deliberations, it might be worth a squint at this:

http://www.smh.com.au/business/banking-and-finance/asic-probes-buy-now-pay-later-schemes-including-afterpay-20171116-gzn87c.html

adam
18-11-2017, 02:13 PM
Hey Adam, while you are making your deliberations, it might be worth a squint at this:

http://www.smh.com.au/business/banking-and-finance/asic-probes-buy-now-pay-later-schemes-including-afterpay-20171116-gzn87c.html

Thanks Rabbitz, will keep an eye out for their report. I doubt we will include a service like this before the end of the year.