I've been looking at this and had a quote on a bike costing just under a grand with 12 x monthly payments of £53.66 giving a total of £643.92 when tax deductions etc are taken into account.
Sounds good except..............................
SmeHci have a commission (according to the supplier and which has to be paid separately by me) of 12.5% AND charge a 'disposal fee' of £120 at end of term. So 'bargain' of £643.92 suddenly becomes less of a bargain at £888.92.
A few questions arise out of this.
1. Do retailers normally just absorb this fee rather than pass it on to the customer?
2. SmeHci are receiving £245 on the deal. Are they providing the credit, or is it simply an administration of money advanced by the Government?
3. Am I the only one who thinks this 'disposal fee' is a bit of a piss take and simply a means of increasing profits as presumably very few 'disposals' actually take place and it is a simple transfer of title to the goods.
It's still a good deal in as much as it saves me over £100 with interest free credit for a year but it strikes me that the real winners in all this are SmeHci, who, depending on how the bikes are funded, are either making a good profit, or a very very good profit with virtually no risk.
There is just something about it which doesn't feel quite right to me.