cookeaa - Member
0% finance mr swanky great you offer what appears to be competitive consumer credit for relatively pricey purchases, but don't your finance and lease deals also include insurance, I seem to remember being a bit shocked at that on a previous thread concerning your business...
Thanks for the compliment. To answer your specific question, leases include insurance, and it's an option on 0% finance.
It's always an education when people jump to negative conclusions when in actual fact something is there to help.
Take your observation below as an example:
Oh and the insurer applies 25% apr apparently.... get any commission for selling unnecessary policies to people who already have home contents insurance? No wonder you're keen on flogging five years of "finance"...
Where did that come from? We've stripped all the commission out of the insurance plus we've made it so that leasing customers only pay for insurance on the trade price of the bikes rather than the full retail price as that is all that is needed to enable us to replace the bike for them if it goes missing or is damaged beyond repair.
We make no money whatsoever from insurance. To do otherwise would not be in the best interests of members.
You may have been shocked by the prices previously if you hadn't taken into account the fact that the leases have 2 years of insurance built into them, and not 1.
As for commission on the finance - again I can only presume you've not read through our FAQs and About us pages.
We pay the interest for our members. That's how it works throughout the industry. If we were to offer 5 years 0% finance, we'd have a bigger interest bill to pay for our members, it's as straight forward as that.
As for home insurance, usually it is capped at £1000 on most policies so people with expensive bikes usually have to take out a separate policy which often works out at around 9% of the RRP a year.
If you want to take out one of these insurance policies and pay it off over 12 months, then the insurers usually use a company called Premium Credit. They charge anything from 18% to 43% APR - and yes the insurer takes sizeable commission from this as well from Premium Credit.
The point we're making on the site is that we think that is wrong, so we're doing it differently and passing on the savings to our members....not to you obviously..... as you're convinced we must be doing something underhand
You're absolutely right that there is a hell of a lot going on in the cycling industry that is making it an unecessarily expensive sport for many. We're simply trying to reverse this trend as best we can.