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PS4 on Credit?

Posted: Sat Feb 09, 2019 9:02 am
by English Invader
I visited a local Game store today and found that I can buy a PS4 with a 1TB hard drive and RDR2 on what appear to be very favourable hire purchase terms. £24 a month over 12 months with a final total of £319 for a £279 item. £40 for a year's credit seems like a very good deal.

The only thing that's stopping me from going ahead with this is my father. He spent most of his working life in debt and drummed into me from a very young age "Don't ever buy anything on HP. If you can't afford it, you can't have it".

Anyone here have any experience of buying consoles on credit from Game or just credit in general? Things to look out for in the small print etc. On the surface, it all sounds pretty good but is there anything I should look for that might reveal the offer as "too good to be true"?

Re: PS4 on Credit?

Posted: Sat Feb 09, 2019 9:18 am
by Boulder
One thing with debt or credit is that one should not look at the numbers but learn to calculate the relative cost. 319 / 279 = 1,14 so you are effectively paying 14% on top of the price, which is a lot in my opinion. And yes, a lot of people over the years have gotten into problems with buying stuff on such deals. It's easy to fool yourself to think that they are just small amounts per month, but that's where the devil is, in details..

Re: PS4 on Credit?

Posted: Sun Feb 10, 2019 5:37 pm
by Sega2006
I wouldn't unless you gain something extra from it, like cover or something like that.
With devices usually by time the plans up its worth significantly less and you're stuck paying for it even if you no longer have or use it and is part of the reason I stopped doing device contracts for my phone.

Re: PS4 on Credit?

Posted: Wed Feb 13, 2019 2:50 am
by pratty
I wouldn't bother. It's a potential slippery slope, so I'd be wary of normalising it as method of buying things, especially things you dont really need. Set aside an amount of money each month for a PS4 fund, and by the the end of the year you'll be able to pick up a PS4 even cheaper and you won't be paying any interest on top. Plus if a PS5 is announced at E3 I'd expect the price of new and used PS4s to drop as a result anyway.

Re: PS4 on Credit?

Posted: Wed Feb 13, 2019 4:20 am
by psj3809
Totally agree, by the time you finish paying it off it'll be old hat and you'll be annoyoed youre stil paying off an 'old' console which has dropped in price by then.

As pratty says start saving up for the next version (believe me i hate saving but its the sensible thing to do !). I bought myself a new gadget but made myself wait 2 months as i knew the next version was out , then the one i wanted (the older one) dropped in price instantlyl. Again i hate waiting but was worth it in the end

Re: PS4 on Credit?

Posted: Wed Feb 13, 2019 4:58 am
by Antiriad2097
Conversely, it's only one year. A PS4 isn't suddenly going to become garbage overnight.

If you're happy with the interest paid and know that you can pay it every month without detriment, even if some unexpected bill comes along, there's no harm.

I'd heed the warnings of it being a slippery slope to acceptance, but one item, of relatively low value, over one year, shouldn't be disastrous if you're sensible and don't use credit randomly.

Also factor in you'll want to buy games, so allow for that expenditure over the year.

Is it a great deal? No, not at that interest rate. Is it going to break the bank? Probably not.

Your call really. If you can safely afford it and your job/pay is as secure as it can be these days for the year, I wouldn't fret over it personally. Is that extra 11 months of enjoyment of the system worth the extra money vs saving up and waiting?

NB: I say this as someone who has hideous debts with credit. I've used it wisely in the past, but I've also fallen foul of it. People think nothing of mortgages and car loans, same difference, only the scale varies. I reckon this is small fry and you're worrying overly because your dad has got into your head. You know your own finances. Me, I'm not a saver. I'd never save for something. Credit, get it now, pay off later, accepting the price hike it induces. It's all the other stuff that catches me out, expensive holidays etc. Sorted out now, but I've been there and it would be easy to do again. £300 or so isn't going to be life changing if you find later on it isn't a good fit for your lifestyle, one year and you've learned for yourself what the experience is.

Re: PS4 on Credit?

Posted: Wed Feb 13, 2019 5:56 am
by NickThorpe
I got my PS4 on credit at the end of 2014, and I'm glad I did it that way - but my circumstances are a bit different. In my case, the extra year with the system was very important as it made freelance for the sadly departed Play and games™ much easier, so the cost of borrowing was offset against increased earnings opportunities. Other than that, I just made sure I was secure in other regards - I was well past my probation period with Imagine, and first revision bugs should have shown up with the hardware, so it felt like the right time. I was also able to get it on good terms, which helped.

Without knowing your circumstances I couldn't make a recommendation, but there weren't any hidden pitfalls with mine. The only bugbear was that they'd only deliver to my home address, and only on weekdays when I was at work. I ended up having to take a long trip out to the depot (twice) in order to pick the damned thing up.

Others in the thread have brought up some valid points, but it's worth noting that Sony systems usually live on for a while past the introduction of their successors. Even if the PS5 is introduced next year, there's a big enough contingent of PS4 owners out there that you'll probably see games for a few years afterwards. Maybe even some high profile ones, too - for example, Metal Gear Solid V: The Phantom Pain and Persona 5 are great games that are most strongly associated with the PS4, but they also had perfectly good PS3 versions.

While you should factor in some money for games, one thing I do like about modern consoles is that they've got some fine free-to-play games. There's plenty of fun to be had with games like Apex Legends, Gwent, Let It Die, Dead Or Alive 5: Core Fighters and (if you must) Fortnite. You might need PlayStation Plus for some of those, but that also gives you monthly free games from the system's back catalogue for as long as you maintain a subscription, so it's worth having even if you're not necessarily planning to play online.

Re: PS4 on Credit?

Posted: Wed Feb 13, 2019 6:42 am
by Antiriad2097
On the games note, I don't see future releases as a huge issue. There's a massive back catalogue to draw from that will last for several years before they're all played anyway.

In a similar vein, PS3 was supported online for years after PS4. Sony aren't likely to cut off an easy revenue stream for past releases any time soon.

As Nick says, personal circumstances are the main thing here. I was caught out by a change of job and an anticipated pay increase that didn't happen as the oil industry crashed a few years ago, so my income dropped below what I was used to. I had a lot to pay. £24 a month is easily payable unless things get very tight indeed. £6 a week. If it's that big a concern, are there things you could cut out to allow you to maintain those payments if something happened to make it less affordable?

Re: PS4 on Credit?

Posted: Wed Feb 13, 2019 3:04 pm
by English Invader
As it turns out, it's all moot now anyway. Game turned me away because I don't have a driving licence or passport and they wouldn't accept my concessionary bus pass as photographic proof of my ID.

The good news is that Asda are selling a PS4 Pro (just the hardware) for £249.99 so I might focus on getting my overdraft clear for the time being and buy one outright when I've got all my existing credit back.

Re: PS4 on Credit?

Posted: Thu Feb 14, 2019 8:25 am
by oldtimer
I was going to say it might be worth looking around for an interest free offer (they are still around) but obviously its academic now.

Re: PS4 on Credit?

Posted: Fri Feb 15, 2019 2:43 pm
by RetroBob
I don't want to sounds preachy (but here I go anyway)... it's a good idea to pay off your overdraft first, your dad's words are wise, mine uttered similar and as much as it pains me to say he's right, it has stood me in good stead. Let's say you did buy that PS4 in your overdraft... that's on credit and you'd be being charged overdraft fees for it.

Getting credit once is a slippery slope as pratty says... "it was ok last time" can easily justify other or multiple purchases on credit and before you know if you're knee deep in debt for stuff that has depreciated in value anyway.

I live by 'if I don't have the money, I can't afford it' and it helps me consider and value the things I do buy.

Re: PS4 on Credit?

Posted: Fri Feb 15, 2019 3:56 pm
by Sega2006
If you want to save up there is some tricks you can use and they do work as I managed 8k in about a year and that was starting from a balance of 0 and minimal employment.

Sin charge/ Change boxes - The sin charge works a bit like a swear box, if you want to buy a needless item (in my case stuff like a bottle of fizz in canteen etc) you must put atleast it's value from your avalible cash into the box, it helps keep you in a mind set to curb unnessacery spending.
When you get change don't leave it in your pocket for later, put it into a change box, I have serveral set up to sort the coins and allow me to keep track better, most banks will hand youcoin bags free on request and do not charge to take in sorted coins, do not use coinstars for this.

Ledger - Some people do this anyway but this allows you to actively watch where you stand with your saving, I'd do a monthly count up from the boxes and then total from savings account, noting each time anything moved accross to the account aswell.

Streamline - This bits usually the hardest but looking at stuff to decide if its really wanted or needed, if it's something you'll get around to someday chances are that day will never come so it may as well free up some cash today.

Bargin and budget - Actively search more for the better deal, yes more leg work might be involved but it can save a lot on the weekly and monthly spend, I used to carefully watch petrol station prices, learn free parking spots and walk the town centre and markets pricing stuff up to check what was cheapest.

Set aside - If you have a designated bit of free cash after your bills set some aside each payday to keep a steady flow into the cause.

Re: PS4 on Credit?

Posted: Mon Feb 18, 2019 9:08 am
by Megamixer
My two pence worth...

I too was brought up to not buy what you can't afford. If you want something then you have to work for it or find a way to make better/bigger money.

The only thing I personally condone credit for is mortgages or cars. Even with the latter, I paid outright for my first two cars and had to get the third on finance because the previous one died less than twelve months later and I hadn't built up sufficient funds to buy another of decent quality outright.

But for entertainment or purchases that really aren't necessary to live, I wouldn't do it. I always ask myself "do I NEED this or am I just buying it because it's cheap/on offer/because I just want it in a materialistic way". Don't get me wrong, I've been through my more frivolous years and wasted so much money on stuff. Relevant to this forum, I've probably spent hundreds, if not thousands on games, consoles and retro and re-sold most of it without ever using it. The fact that I didn't miss 95% of the items once they were posted off to their new owners proved that they had probably been poor purchases in the first place.

As for money/finances in general, I immediately take out everything I need to set aside for the month then keep a track of what I'm spending on a weekly basis so I know when enough is enough and I will stay in the black and still have money left over to save.

Keeping track of what you spend and what you spend it on down to the penny for a single month also helps highlight what you might be spending on that you can do without. For example, I was often spending a fiver at a time in corner shops on crap and lottery tickets (I'm a white van man delivery driver so it comes with the territory!) and I calculated that if I did that twice a week then it was £10 a week, £40 a month, £480 a year! That's £480 spent on impulse crap that I have nothing to show for. They call it the compound effect.

I know I sound like a boring **** with the above but it's my money that I've earnt and I try not to waste it anymore. Would much rather have the money for hobbies or going out - things I'd class as worthwhile expenses.

Anyway, I suppose that was more like my two hundred pounds worth rather than two pennies worth but that's just how I do things.

Re: PS4 on Credit?

Posted: Fri Feb 22, 2019 10:55 am
by psj3809
^Yeah get your point BUT you also only live life once. Part of me regrets not buying a house early in my 20's when prices were dirt dirt cheap, instead i had to live at home for ages waiting till i got a decent job to be able to get a flat. Do i regret that ? Nah, had the time of my life in my 20's drinking/going out/meeting girls and 'getting it out of my system'

Now i'm in my 40's, been married a fair while and yeah i could have had more money, bigger deposit for my house i'm in now but again you only live life once. Havent got any huge regrets. I know the odd person who keeps rattling on about 'i paid my house off by the time i was 40' - yeah you did you boring g!t but you hardly ever went out the last 20 years either.

Needs to be a decent compromise, i wouldnt count the pennies every single day but yeah i wouldnt be a party animal every day of the week either. I personally wouldnt waste renting/getting a loan for some console.

Re: PS4 on Credit?

Posted: Mon Mar 04, 2019 1:12 pm
by ALK
pratty wrote:
Wed Feb 13, 2019 2:50 am
Plus if a PS5 is announced at E3 I'd expect the price of new and used PS4s to drop as a result anyway.
Won't be at E3, Sony's not going. Though I think they're having their own event sometime later.