Beginner's Guide to Retail Finance for Home Appliances

Is This Guide for You?

If you’re looking to buy a new washing machine, fridge, or any home appliance in the UK but aren’t sure if you can afford the full price upfront, this guide is tailored just for you. Maybe you’re moving into a new place, replacing something that’s broken, or upgrading for extra convenience—whatever the reason, understanding retail finance can make your buying journey much smoother.

Retail Finance in Simple Terms

Let’s break it down: retail finance means spreading the cost of your new home appliance over an agreed period instead of paying in one lump sum. Essentially, a finance broker (like us at Kandoo) connects you to lenders who offer payment plans tailored to your needs.

• You pick your appliance
• You apply for finance (a quick process!)
• Once approved, you pay in instalments—often monthly

That’s it! No need to put your dreams on hold just because payday is weeks away.

Why Should You Care?

Being able to spread payments makes essential purchases more manageable and less stressful. That means you get what you need now, instead of waiting to save up or dipping into emergency savings. You’ll also find that many retailers offer flexible deals, giving you options to suit different budgets.

Key benefits:

• Immediate access to appliances
• Manageable monthly payments
• Protection from sudden large expenses
• Better budgeting

How Retail Finance for Appliances Works (In Plain English)

Let’s keep it simple:

1. Choose your appliance: Visit your favourite retailer or browse online.
2. Apply for finance: At checkout choose the finance option and fill out a short application. This usually takes just a few minutes.
3. Credit check: The lender will check your credit history to make sure repayments are affordable. Don’t worry—this is normal and often quick.
4. Decision: If approved, you can take your appliance home, or get it delivered, right away.
5. Repayment: Pay monthly or at the agreed interval, according to your finance plan.

You get the appliance now and pay it off over time. Simple, right?

A Real-Life Example

Sarah’s washing machine suddenly broke down. Rather than wait weeks to save up for a new one, she applied for retail finance at checkout. The approval took only minutes. Sarah chose a payment plan that allowed her to spread the cost over 12 months with fixed monthly payments, keeping her budget in check while solving her laundry problem right away.

Jargon Buster: Key Terms Explained

• Retail Finance: A way of paying for goods in instalments instead of all at once.
• Broker: A service (like Kandoo) that matches you with finance providers.
• APR (Annual Percentage Rate): The total yearly cost of borrowing, including interest and fees.
• Deposit: The initial amount you might pay upfront.
• Credit Check: A way for lenders to see if you can repay the loan by looking at your financial history.
• Fixed Rate: A payment amount that won’t change over your agreement.

Frequently Asked Questions

Q: Will applying hurt my credit score?
A: Most lenders do a soft check first (no impact), but if you go ahead, a hard check may be done, which can have a small, temporary effect.

Q: Do I need a big deposit?
A: Not always. Some finance plans require no deposit, while others might ask for a small one.

Q: What happens if I miss a payment?
A: It’s important to keep up repayments to avoid fees or a negative impact on your credit history. Contact your lender if you run into trouble—they’re there to help.

Q: Which appliances can I buy with finance?
A: Everything from fridges and ovens to washing machines and dishwashers! Always check with your retailer.

Ready to Make Your Next Appliance Purchase Easier?

With retail finance, getting the appliances you need is more accessible than ever.

Thinking about spreading the cost of your next big buy? Reach out to Kandoo to learn more, or see what our partner retailers can offer you today!