How to Spread the Cost of a New Bed: Finance vs Saving Up Compared
Disclaimer: This article is for general information only and does not constitute financial advice. Your financial circumstances and needs are unique, so consider your budget carefully and review the terms, costs and risks of any finance agreement before making a decision. If you're unsure what's right for you, consider seeking independent financial advice.
Purchasing a new bed can involve a significant upfront payment. Depending on your budget and how soon you need the product, you may prefer to save towards the purchase or spread the cost using a finance arrangement.
At Simba, we offer several payment options through third-party finance providers, including interest-free instalments and longer-term credit agreements.
Understanding the differences between saving and financing can help you compare the timing, overall cost and financial commitments associated with each approach.
Is It Better to Finance a Bed or Save Up?
Neither approach is automatically better for every customer. The decision depends on the purchase price, your existing savings, available monthly budget and whether you need the bed immediately.
Saving allows you to accumulate the purchase amount before ordering. You do not need to enter a finance agreement to fund the purchase.
Financing allows you to purchase an eligible bed and make payments over an agreed period. However, approval and eligibility conditions apply, and some arrangements charge interest.
A useful starting point is to compare the full amount payable under each option rather than focusing exclusively on the monthly instalment.
How Does Saving Up for a New Bed Work?
Saving involves setting aside money until you have enough to pay the purchase price.
For example, if your intended purchase costs £1,200 and you save £100 each month, you would accumulate that amount over 12 months, assuming you start without savings allocated to the purchase.
This approach does not require credit approval or ongoing repayments after you have paid for your order.
However, it means waiting until the money is available before purchasing. It is also important to remember that promotional prices and product availability may change during the saving period.
How Does Bed Finance Work at Simba?
We work with several finance providers to offer payment arrangements for eligible purchases, including beds.
Our finance options include interest-free instalments through V12 Retail Finance and Splitit, alongside longer-term interest-bearing arrangements.
V12 Retail Finance offers interest-free options for qualifying orders starting at £250, with repayments collected by direct debit.
Splitit provides an interest-free instalment option for qualifying orders starting at £150, using an eligible payment card.
We also offer interest-bearing arrangements through V12 Retail Finance and Snap Finance, subject to the provider’s terms and application requirements.
How Do Interest-Free Instalments Compare With Saving?
Under an eligible 0% APR agreement, you can spread the purchase price across the agreed repayment period without interest being added.
Our advertised interest-free options include three, six and 12-month instalments, with 24-month interest-free arrangements available for qualifying purchases of at least £2,000.
The precise options depend on the provider, order value and eligibility.
For comparison, a £1,200 purchase spread over 12 months at 0% APR would involve £100 per month, assuming equal installments and no additional charges.
Saving £100 monthly for 12 months would accumulate the same amount. The central difference is when you receive the product and whether you enter a payment agreement.
What About Longer-Term Finance With Interest?
Longer repayment periods may result in smaller monthly payments, but interest can increase the total purchase cost.
Our longer-term V12 Retail Finance arrangements are advertised from 13.9% APR on qualifying orders of at least £250, with options extending up to 48 months.
Snap Finance offers plans from 19.9% APR on qualifying orders of at least £200. The published representative APR is 29.9%.
Our finance page illustrates a £1,200 Snap Finance purchase with 24 monthly payments of £65.28 and a total payable of £1,566.72, using a representative 29.9% APR.
This is an illustrative example, not a quotation or guarantee of the terms you will receive.
What Should You Compare Before Deciding?
Start with the full purchase price and the amount you can comfortably allocate each month.
For finance, consider the APR, agreement length, total amount payable and repayment schedule. A longer term should not be assessed solely on the basis of its monthly payment.
For saving, consider how long it would take to accumulate the required amount and whether waiting is practical.
Credit agreements are subject to affordability, age, status and the provider’s eligibility requirements. Carefully review the actual figures and agreement documents before accepting finance.
FAQs
Yes. The application process includes a credit assessment, and our finance information specifically states that V12 performs a hard credit search when processing an application.
No. Our published guidance states that Splitit does not require a credit check. However, you must have an eligible card and sufficient available credit for the purchase.
Our finance page also describes PayPal Credit offering four months interest-free for qualifying purchases over £99. The credit is arranged directly by PayPal and is subject to its own procedures.
Yes. Our guidance explains that V12 customers can arrange overpayments by contacting V12 directly or through the provider’s self-service portal.
No. Meeting the minimum purchase requirement does not guarantee approval. Finance applications are assessed against the provider’s eligibility and affordability criteria.
