Last year, if you wanted to spend big money at Amazon, your bank account would receive a short, sharp shock as the money was swiftly pulled from your cash pile and into Amazon’s. This year, that no longer need be the case: the retail giant has announced a new loan scheme in collaboration with Hitachi Capital, meaning that your money will be taken in smaller, less painful increments over a period of up to four years.
There are plenty of caveats, of course. The first is that the loan is subject to an APR of 16.9%, meaning that you’re paying considerably more for the convenience of staggered payment. If, for example, you were buying a £1,999.99 television, you’d end up paying £2,765.11 in total over four years.
It’s also only available for items sold and dispatched by Amazon, meaning third-party goods are out. You need to spend at least £400 to qualify for 24 months, £750 for 36 months and £1,000 for 48 months, although it doesn’t all need to be on a single item if you find yourself craving several hundred pounds’ worth of elastic bands without the funds to back up your desire.
There’s no deposit involved: the first payment is the beginning of your monthly installments. Simply select financing at the checkout for a qualifying order, and then see if you pass the credit checks for a loan of one to four years.
The company assisting with the financing options is Hitachi Capital, which already provides a similar service at John Lewis. Gerald Grimes, the managing director of Hitachi Capital Consumer Finance, told The Guardian: “Our new trial with Amazon is all about giving people the fastest and most seamless experience when it comes to point-of-sales credit.”
“Amazon is famous for its ‘1-Click’ service, allowing you to place an order literally at the click of a button with prestored payment details and delivery addresses. This is part of boosting that customer experience and could signal huge changes for the online retail industry,” he added.
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Images: George Grinsted and Mike Seyfang used under Creative Commons
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