Finance Options for my laptop purchase
Introduction
The purpose of the report is to find two financing options for the purchase of a laptop. The purchase is through Noel Leeming, paying a $300 deposit. The total cost of the laptop and accessories is $1932.95.
Finance Option 1 [Westpac]
Get a personal loan from Westpac Bank of $1650
Loan detail summary:
Loan amount- $1650.00
Interest Rate- 18.95%
Loan Term- 1 year
Monthly payment- $176.00
Total Payment- $2112.00
Additional Cost-
Establishment and Documentation Fee- $250.00
In case a payment is missed, a penalty of $25 per time is issued.
Westpac does not provide loan for people under the age of 18.
Finance Option 2 [Marble Finance]
Get finance from Marble Finance (a financing option available from Noel Leeming) of $1650
Loan detail summary:
Loan amount- $1650.00
Interest Rate- 22.3%
Loan Term- 1 year …show more content…
In Option One, my total repayment is $2112. This makes Option Two to be more cheaper having an interest rate of 22.3%.
The two options has a loan for the same term (1 year). By choosing both options, paying off debts faster will help to start savings earlier. I can pay the interest twice for Marble Finance and I will still have a good surplus if there is less personal expenses.
A disadvantage of choosing Marble Finance is that the finance company do not provide financing to people under the age of 18 and who has at least minimum income of $350 per week after tax. This requires me to have my parents as the borrower. However my parents have agreed to be the borrowers. This puts in a lot of strain as the finance company would regularly contact my parents regarding the loan. This increases the work as I have to transfer the amount to my parents account monthly for the payment. Nevertheless, the making an automatic payment two days before the payment day monthly will make the job easier.
Finance Summary
Westpac
Introduction
The purpose of the report is to find two financing options for the purchase of a laptop. The purchase is through Noel Leeming, paying a $300 deposit. The total cost of the laptop and accessories is $1932.95.
Finance Option 1 [Westpac]
Get a personal loan from Westpac Bank of $1650
Loan detail summary:
Loan amount- $1650.00
Interest Rate- 18.95%
Loan Term- 1 year
Monthly payment- $176.00
Total Payment- $2112.00
Additional Cost-
Establishment and Documentation Fee- $250.00
In case a payment is missed, a penalty of $25 per time is issued.
Westpac does not provide loan for people under the age of 18.
Finance Option 2 [Marble Finance]
Get finance from Marble Finance (a financing option available from Noel Leeming) of $1650
Loan detail summary:
Loan amount- $1650.00
Interest Rate- 22.3%
Loan Term- 1 year …show more content…
In Option One, my total repayment is $2112. This makes Option Two to be more cheaper having an interest rate of 22.3%.
The two options has a loan for the same term (1 year). By choosing both options, paying off debts faster will help to start savings earlier. I can pay the interest twice for Marble Finance and I will still have a good surplus if there is less personal expenses.
A disadvantage of choosing Marble Finance is that the finance company do not provide financing to people under the age of 18 and who has at least minimum income of $350 per week after tax. This requires me to have my parents as the borrower. However my parents have agreed to be the borrowers. This puts in a lot of strain as the finance company would regularly contact my parents regarding the loan. This increases the work as I have to transfer the amount to my parents account monthly for the payment. Nevertheless, the making an automatic payment two days before the payment day monthly will make the job easier.
Finance Summary
Westpac