You may be toying with the idea of buying your very first Dior bag. Unfortunately, this purchase is likely to set you back by thousands of dollars.
You then take a step back, have second thoughts about the purchase and whether it is a good idea or not.
It is during times like these where you might consider a luxury goods loan to help you finance your dream bag.
Why Are Luxury Goods A Worthy Investment
Whether it is clothes, bags, watches or cars, the price tag on luxury items are ridiculously expensive. However, this doesn’t seem to deter the many Singaporeans that line up outside luxury stores for the opportunity to be the proud owner of their latest offerings.
Designer items were once reserved for the rich and famous. However, luxury brands are beginning to see an increase in interest in their products amongst regular folk. This is because more people are seeing the purchase as an investment rather than simply for prestige or the sake of keeping up with the latest trends.
Luxury items are a great investment for several reasons:
1. They’re Durable
Luxury products feature high quality materials and excellent craftsmanship. A lot of care goes into the details to ensure that the customers receive high quality products. When you purchase a designer item, you’ll be assured that it will most probably withstand the test of time.
If you’re thinking of buying a designer bag, you can be sure you’ll be carrying it around for many years to come. If you opt for the knock off, you will probably have to replace it soon.
2. They Often Have A Good Re-Sale Value
When you buy a luxury item, you are making an investment that will most likely give you great returns. Many people who buy luxury bags, shoes and even cars see great returns when selling them as vintage items. This is because the value of these items often increases with time.
Even if the item’s value doesn’t increase with time, the item will likely still fetch quite a reasonable price when selling it.
What To Consider When Buying A Luxury Item
While luxury items offer great value, it is important to take some time to think about the purchase. After all, you will be parting with a lot of your hard-earned cash to own the item. You should ensure that the purchase is worthwhile.
The following are some factors to consider when buying a luxury item:
1. Can You Afford The Item?
Did you spot the latest designer bag while you were having lunch in town? Did it call out to you? It can be tempting for you to rush out whip out their credit card to make the purchase. All in the spur of a moment.
However, it’s important to be honest with yourself and determine if you really can afford to buy the item you’re interested in without compromising your finances. It doesn’t make sense for you to wipe out all your personal savings just to get a branded back.
2. Why Are You Buying The Item?
While this may seem obvious and a redundant question to ask, it is important to understand the real reason behind your purchase.
If you’re getting the item simply because other people have it, you may want to reconsider the purchase. You should love the item enough to spend an arm and leg on it. Buying the bag as an investment is an even better reason for making the purchase. You’ll simply need to ensure that it is something that will increase in value over time.
3. Is The Item Timeless?
This is especially important for those buying items as an investment. You should consider the design and various other factors to determine whether the item is a classic one or a seasonal one.
That said, even if you’re not buying the item as an investment, you’ll want to go for a classic and timeless piece. These will withstand the test of time and passing trends while retaining their value or even increasing in value with time.
These items are also more versatile and can be used more often. This way, you wouldn’t find yourself only using the item once and leaving it in the storeroom to collect dust thereafter.
Fashion trends come and go. It doesn’t make sense to spend a lot of money on an item that will soon be out of fashion. Go for the classics.
Tips On How You Can Afford Luxury Goods
If you’re still determined to call that luxury item yours, you may be wondering what you can do so that you can bring it home. The following are some tips that you may want to consider:
1. Consider Saving For The Item
Are you able to save for the item? It is best to pay for the item with money that you have. Consider tightening your belt in the short term to be able to afford the purchase. This will ensure that your splurge won’t affect your current financial state.
2. Wait For A Sale
Is there a chance that the item will go on sale eventually?
It’s rare for designer items to go on sale. However, they do sometimes get their prices marked down quite a bit. There are occasions when stores will offer discounts on some items as a part of a promotion.
If the store you’re buying the item from has a history of having sales, you may want to consider waiting to see if the item will go on sale. Many luxury brands offer discounts when you purchase directly from their websites too. Special occasions like Singles Day (11/11) and Black Friday are great occasions to lookout for such sales.
3. Can You Buy It Second Hand?
You can save a lot of money by choosing to purchase a vintage luxury item rather than brand new. You’ll simply need to ensure that it is in good condition before you part with your hard-earned cash. In certain cases, if the second hand item is still relatively new, the warranty might still be valid.
However, you should also be aware that for goods that have pass the warranty period, you will not be able to get free repairs if you choose to buy second hand goods.
Ensure that you make your purchase from a reputable dealer. They should be able to authenticate the product and provide you a guarantee.
Places like Carousell and Reebonz are examples of places where you can purchase second hand items.
4. Take Out A Luxury Goods Loan
If you don’t wish to interfere with your savings or financial status, and prefer to save up for emergency situations instead, you should consider taking a luxury goods loan. This is an unsecured loan offered by licensed moneylenders in Singapore. The loan allows you fast access to the cash you need for the purchase in a short time thanks to quicker approvals and processing.
These loans are specifically tailored to finance your luxury goods purchase. They come with flexible repayment terms to suit your financial situation and the interest rates are highly competitive.
Steps To Note Before Getting A Luxury Goods Loan
Getting a luxury goods loan is often an easy process. However, you will want to do your due diligence to ensure that you’re protected. This means ensuring that you borrow from a licensed lender and are getting the best possible deal. Consider taking the following steps in your search for the right luxury goods loan.
1. Search For A Licensed Moneylender
Search online for moneylenders offering luxury goods loans. Double check with the Ministry of Law registers to ensure that the moneylenders you are interested in are registered and have current licenses.
2. Compare The Loan Terms
What are the interest rates on the loans? Are the loan terms negotiable? Are there extra fees and charges? What happens when you’re unable to make a payment?
If you have decided on the moneylender to approach for the loan check to see whether you meet the requirements for applying for the loan. Decide on the amount you wish to borrow before submitting your application.
Applying For A Luxury Goods Loan With Credit Thirty3
As a licensed moneylender under the Ministry Of Law, Credit Thirty3 operates under a strict code of ethics. This is because we aim to make your loan process as seamless as possible. A luxury goods loan can bring you one step closer to your dream bag, shoe or watch. Get in touch with us to find out more!