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This article summarizes the topic of shopping loans (credit installment plans) for purchasing luxury watches , taking into account current news and market trends. The text and images were initially generated by AI and rewritten by an editor. Additionally, the annual interest rates shown are for reference only, and are intended to convey the benefits of purchasing with a shopping loan. If you are considering purchasing a watch, please contact us.
"I want to save cash while still getting the one item I want now." Shopping loans (credit installment plans) are a powerful solution for situations like this. By designing the down payment, number of installments, and effective annual percentage rate (APR), you can plan your purchase without disrupting your cash flow. This article focuses on installment plans at the time of purchase , rather than pawning or using as collateral , and explains the system, costs, and points to note.
Shopping loan basics: effective annual interest rate, down payment, number of installments
With a credit loan, the total payment amount is determined by the effective annual percentage rate (APR) , the down payment , and the number of installments . In some cases, it is possible to use bonuses or make early repayments (depending on the terms and conditions of each company).
| example | Product price | down payment | Effective annual rate (example) | Number of times | Monthly estimate | Estimated total payment |
|---|---|---|---|---|---|---|
| Short term × Low cost | ¥2,000,000 | ¥400,000 (20%) | 9.0% per year | 24 times | Approximately ¥75,800 | Approximately ¥2,219,000 |
| Mid-term x Balance | ¥2,000,000 | ¥200,000 (10%) | 10.5% per year | 36 times | Approximately ¥59,900 | Approximately ¥2,356,000 |
| Long-term × monthly reduction | ¥2,000,000 | ¥0 | 12.0% per year | 60 times | Approximately ¥44,500 | Approximately ¥2,670,000 |
*The above is an approximate estimate. Actual conditions will vary depending on the screening results, interest rates, and fees. Be sure to check the fees and whether early repayments or bonus payments are possible before signing the contract.
- Guideline for repayment ratio: Keeping your monthly repayments within 20-25% of your monthly take-home pay will ensure safe management.
- Consider the term: For longer periods, monthly payments will decrease while total payments will increase. Balance this with the length of time you want to hold the policy .
- Market fluctuations: Popular models tend to hold their value well, but the market price fluctuates. It is best to avoid borrowing money with the intention of selling .
Credit companies and points to note
Examples of companies we handle: JACCS / SMBC Finance Services / Orico / APLUS (in alphabetical order).
Even if the conditions are the same , the screening criteria, effective annual interest rate, bonus inclusion, and early repayment fees will differ.
| perspective | Points to check | Common differences |
|---|---|---|
| interest rate | Effective annual rate (APR) and campaign availability | Even if the amount and number of payments are the same, the annual interest rate may differ. There may be campaigns offering lower rates. |
| Repayment Method | Bonus inclusion/increased repayment/early repayment | Whether or not there is an advance fee and whether online procedures are available vary by company. |
| examination | Employment verification, required documents, and review time | The time can vary from immediate to a few hours. For larger amounts, additional documents may be required. |
| Benefits | Interest-free loans and low-interest campaigns | Limited-time offers include "low rates up to 36 times." Beware of early sales. |
*Each company's interest rates and screening conditions may change depending on the announcement and timing. The latest conditions will be provided at the branch.
"Split Affinity" by Model
- Rolex : Submariner/GMT-Master II/Daytona etc. have a lot of information and are well suited to a split design that assumes long-term ownership.
- Audemars Piguet : The Royal Oak series has a wide price range. It is easy to balance your monthly payments with a larger down payment .
- Patek Philippe : Nautilus/Aquanaut/Calatrava tend to have limited supply. Apply early, taking into account the review period .
- Cartier : Santos/Tank watches have a wide range of prices depending on the model. Monthly payments range from 36 to 60 installments, making it easy to adjust.
- Omega : Speedmaster's evaluation is clear based on accessories and maintenance history. Apply for the campaign to reduce the burden.
Benefits and risks of shopping loans
| item | merit | Points to note |
|---|---|---|
| Cash Flow | Conserve cash and plan your monthly payments. | The longer the term, the higher the total payment. Check whether early repayment is possible. | credit information | A payment history is good for building credit. | Late payments are bad for your credit. Repayment ratios are in a safe zone. |
| Acquisition timing | It's hard to miss out on one right after it arrives. | Review time is required. Please allow ample time for travel, gift-giving, etc. |
| Market fluctuations | Long-term holding smooths out the impact of price fluctuations. | Borrowing with the intention of short-term resale is not recommended. |
For first-time users | 7 steps from application to delivery
- Model selection: Check the balance between purpose, wrist size, and asset value.
- Estimate creation: Monthly estimate based on price, down payment, number of sessions, and effective annual rate.
- Application for review: Identity verification and employment verification (if necessary).
- Review result: Conditions confirmed. Bonus and advance payment options also specified.
- Contract execution: Electronic contract/in-store signature.
- Product reservation and delivery: Delivered after payment confirmation.
- After-sales: Warranty and overhaul periods are also managed and scheduled.
summary
Shopping loans are an excellent way to comfortably control your monthly payments depending on your down payment, number of installments, and effective annual interest rate . By keeping your repayment ratio (within 20-25% of your take-home pay) and using prepayments , you can protect your cash reserves and get the loan of your dreams. Interest rates and campaigns vary depending on the credit company, so comparing multiple companies is essential.
FAQ (Shopping Loan)
| Q1. Will this affect my credit information? |
|---|
| A. Yes. Just like with credit or loans, repayment information is recorded. On-time repayments are good for building credit , while late payments are bad. |
| Q2. What is the interest rate? |
| A. The effective annual rate will vary depending on the credit company and campaign. Even for the same amount and number of payments, there will be differences, so we recommend getting multiple quotes . |
| Q3. Can I make an early repayment? |
| A. It may be possible. Please check in advance whether there is a fee and how you can pay (online/phone/in-store) . |
| Q4. Can I use it in conjunction with a bonus? |
| A. There are plans that can be used in combination. You can reduce your monthly fee by increasing the fee twice a year. |
| Q5. How long does the review process take? |
| A. The estimated delivery time is immediately to several hours. For high-value items, it may take longer due to the need for additional documentation. |
