Massive tellies for the financially inept
 

Just landed through my letter box - a catalogue full of massive televisions, computers, smart phones and expensive furniture, all of which can be paid for with no deposit and a fixed amount per week. Normally I wouldn't wipe my ar*e with such things, but the sheer audacity of the company caught my eye... no wonder the country is in such a mess.

Page one shows a 46 inch TV, which a little research online suggests should retail for around £1100. No doubt it's a very nice piece of kit, and certainly not cheap by any standards.

But... not only is the cash price listed at nearly £1500 - wildly uncompetitive to begin with - the total price with credit is over £2000. Not only that, it's well over £3000 including some kind of extended warranty (the terms of which aren't disclosed).

I'd have no problem with the idea of a firm offering basic electricals on affordable weekly or monthly payments, but >£3k on a telly for someone with a low income and poor credit rating? I feel nauseous, and not just because it's 3x the actual value of the set.

They probably have to make things that much moe expensive to cover the cost of the amount of customers that default on the payments. Think about the customer base, TV, DVD, Stereo = £4K, pay a few payments and then stop. Go to court, declare themselves bankrupt and can only afford £5 a week and no more will happen because the account will be in the name of the bird with a dozen kids so can't be jailed.

Meanwhile, I spend £50 on a Freeview HD box because I think a recorder at £200 is expensive when they'll be half that next year. However, they did try to sell me a surge protector and an HDMI cable, despite a perfectly good HDMI cable coming in the box. At least they didn't try an extended warranty!

Mind you, I did get a DFS sofa on the never never to keep the credit rating up and because they wouldn't give a discount if you paid it all up front.

Wasn't this bunch of clowns was it ?

http://www.brighthouse.co.uk/

Shaun

Thanks for that link, the store finder was really handy (for areas to avoid).

http://www.brighthouse.co.uk/company/store-finder.asp

:lol1:

I'm not doubting the economics - just the choice of business model.

Surely nobody needs a high-end TV enough to pay three times what it's worth, least of all someone who can only pay for it a week at a time. By all means lend money for life's essentials, but to even have properly top-end kit in the catalogue at all...??

(What's really sad? My own TV is a 10 year old CRT, it still has a fantastic picture that's way better than most current LCD sets, yet I probably couldn't even give it away :mad:)

Isn't this how some of those who make a career of claiming as much benefit as possible get their "basic necessities" such as big TV's, computers and games consoles etc? They don't need to look at the total cost, only how much the repayments will eat into their handouts each month. I would assume they would be ok paying 3 times the actual cost if it means their repayments are low as possible as it's the taxpayer that ultimately pays for their sets.

Hopefully, this Government will put an end to all this very soon when they reform the benefits system.

And this came through your door for what reason ....? :Suspiciou :D

Dave

This is nothing new though is it? I remember when I was a very small kid (so decades ago) lots of people (low income) bought things from catalogues. In much the same way they paid huge amounts over the usual rrp to be able to but it now and pay monthly.
To some extent its like when lower income people rented TVs and washing machines etc.

Its a real anomaly in that the poorest have to pay the most for everything, its been like that for as long as I can remember

We had a ****ty TV when I was younger and I remember be amazed at my mates TWO big 32 inch screens .. CRT like, but wow ..

The fact that they had boxes attached to them where by you needed to put a pound in to watch .. well that was fine ..

I remember when Granada were around people actually rented tv's and it's not that long ago.

Dunno... the BMW on my driveway is a few years old, though, maybe they thought I looked a bit hard up?

It's one thing to rent something you can't afford to buy outright... quite something else to buy a particularly high-end piece of kit when you can get something for a fraction of the price that will do exactly the same job almost as well.

£300 buys a perfectly decent brand new TV; trying to sell one costing over ten times that on the basis of (lots and lots of) low weekly payments is what's really irresponsible IMHO.

Thing is though people will fall for it. Have you seen the recent advert for Brighthouse on TV? Tarted up mutton looking all happy with their giro walking into Brighthouse for another APR busting purchase :rolleyes:

I'm not rich, bloody hell FAR FROM IT for the last 2 1/2 years, but I'm also not stupid with what money I do have FFS :lol1:

You're right about that. I was in Comet earlier killing time waiting for the other 'arf to finish in Matalan (we do shop in the higher echelons you know ... :wonder: )and the most expensive TV they had was the Panasonic 50" 3D job (VT20) at about £2K. Other 50" jobs for not much over £500 and smaller down from there ... So, as you say, how does that work .... ?

Dave

We have a BrightHouse in our Town ... it opened with razmataz, balloons, wine and cheese, etc.

I went it to see what it was all about .... every single item was horrifically expensive and you had to buy on credit at 29.9%APR!! :eek:

When the slicked back Sales Assistant asked me if he could help me I asked what the cash prices were? He said that they are not geared up for cash instant sales .... and he suggested I would be better off buying elsewhere - fair enough :thumb:

Also, I guess they are American ... as they refuse to open on a Sunday!! Just like The Entertainer ... they still refuse to open on Sunday too (even in the Xmas run up) - you've got to admire their principles, at least!

It works on the basis that the target market probably (won't) be able to affors to walk ino such stores and pay out in full, and quite possibly won't be able to get their credit.

As such, those lower down the scale will almost be forced into these awful stores if they need or want something.

I know it's easy to feel little sympathy if people are foolish enough to part with thousands they can't afford for a TV just to keep up with the Joneses, but these companies prey on the less fortunate for many more ordinary products (much like Dingdongler mentioned about catalogues) as well.

Whilst I understand the pricing in terms of risk of default, I think generally these companies are vulchers.

I can see the logic behind that comment - Americans 'keeping the Sabbath' because they're more religious than us Brits - but it's a long way from the reality of things. The big supermarket/electrical/diy/etc chains across the pond typically open from 9am to 7pm on Sundays, at least in the parts I've visited.

I suppose someone will always try to exploit the situation and take advantage of people.

As you say the only principles they seem to have is about not doing business on a sunday.

Les

maybe they saw you coming and shut up sharpish?

check this bargain out.

http://www.brighthouse.co.uk/product...p?id=TI47STAND

:thumb:

Same thing on peadobay:

http://cgi.ebay.co.uk/BLACK-GLASS-TV...item564083f5fe

Thats a bit revealing!

Les

a bit like that ebay tart with the boots for sale :D