You have seen it on the Television, heard it on TV "FlexiRent to save", "FlexiRent to get the latest technology", FlexiRent to save tax". In reality FlexiRent is far from what they promote it to be! Lets step back and take a look at some of the facts. In the promotions for Flexirent, they promote the tax benefit of renting your equipment and if you are using it for business purposes you can claim the tax back. All their pricing claims use the assumption that the equipment will be used for 100% business use. In reality unless your FlexiRented computer never leaves the office you can never claim that amount. Lets use the FlexiRent Quote tool on their web site. Lets say we are going to buy a Notebook computer for $2700.00.
In both scenarios above you are paying significantly more for the product. Due to a loophole in Australian leasing and renting laws FlexiRent do not have to disclose the full term rental amount to you in the rental contract! So there are quite a few people who get stuck in these agreements when stores such as Harvey Norman have sales on. The sales reps at the stores get commission from FlexiRent for every customer they sign up. This can range from cash incentives, Playstations to holidays! So beware of staff who will push you into a FlexiRent term to get their summer vacation. The sales rep will usually compare the monthly costs of the 3 year FlexiRent to the 2 years interest free, as the monthly payments between the two are fairly similar. The extra cost in the FlexiRent will be explained as insurance premiums and accident cover. Lets look at the cost of the same $2700.00 notebook with a standard 2 year interest free structure.
So when you think about it, getting this notebook on interest free is only going to cost you an additional $70.80 in account keeping fees, compared to the $2170 in pure profit that FlexiRent is making out of you. At the end of your 24 month interest free period, you have a laptop to keep forever. At the end of your FlexiRent period you have to pay a "small amount" deemed by FlexiRent to own the equipment that you have rented. If you don't you can either keep paying the monthly cost or upgrade to a new machine. Now this is where it starts to get messy. FlexiRent will encourage you to upgrade your machine starting from 12-6 months before your lease finishes. When you take out your new lease for your upgraded computer you are not getting anything for your existing machine, you are adding to the balance of your existing FlexiRent term. Using the same example above, we still "owe" $1631 with 12 months remaining on the contract. If you were to buy a new computer at 24 months of the 36 month term, they would give you the cost of 1 or 2 payments for the current machine then add the cost of the new machine on to of the balance. So if your new machine cost $2500, $1631 (Existing Balance) - $270 (FlexiRent Payment for Goods) + $2500 (Cost of new Goods) = $3861 (Total cost of new FlexiRent term)
As you can see, the further you get into FlexiRent the bigger financial hole you start digging yourself into. The contract that you sign with FlexiRent pretty much give you no rights as a consumer at all. For starters, there is no cooling off period if you change your mind about your purchase. If your equipment fails and FlexiRent don't want to fix it, you are left with nothing and a bill. If you want out of the contract or want to increase your payments to end your term sooner you can't. They won't even negotiate with you. So from the above, you would have worked out that FlexiRent is pretty much a big scam for cash, to suck in any unsuspecting person who wants a computer and wants it now. Just a a comparative, I have included the same example using Dell's rental plan calculator.
Dell finance has a saving of nearly $1000! You are still paying more for the product in the long run, but it just puts into prospective how much FlexiRent are gouging their customers, plus with Dell finance you actually own the equipment once the rental term is complete. As you have probably guessed, the main point of this blog is to advice you to STAY AWAY FROM FLEXIRENT and also for you to be careful when purchasing a big ticket item. If you cannot afford to lash out the lump sum, should you really be purchasing the goods? Do your research and check the total cost of the rental agreements. After the sales assistant has worked out the cost, walk away think about it. Do some calculations. Ensure that you know the financial commitment you are about to make.
hi...thankyou...finally i have found someone else with the same problems as i have had with my laptops that i bought my kids almost 2 years ago...mine are ASUS and the worst laptops i have ever had the displeasure of owning..oops or should i say NEVER OWN..I also have sat down after the initial huge sales pitch i got from the Goodguys..didnt exactly have a chance to change my mind either...something NEEDS to be done..i suggest a call to either A Current Affair or Today Tonight (how about both)..to publicly blow this scam out into the open..hmmm just think i will do it..at the end of my lease which i cant wait to get out of...i still have to buy my laptops (which on most occassion dont even work properly) at a fair market value...yehhh right...they told me the fair market valve...sucking more money out of me..DONT FLEXIRENT..ITS A RIPOFF
I have a Sony Vaio on flexirent:( The battry lasts no longer than 20 mins. I took it back to HN to ask if I could get a new bat but they said "sorry you'll have to buy a new one for around $150 as it is classed as normal wear and tear.It also has a few cosmetic flaws now.Should I just smash the darn thing and claim a whole new lap top?
Flexirent are a rip off, inflexible and the worst company to deal with in any way!
so when they say "small amount" to keep the gadget at the end of the term...what is it that they are talking about? Seems like i am already stuck with this :(
so lets say that the gadget i have bought is for 2500 AUD, what is it that they are expecting from me when i buy it from them at the end of the term.
any insight is much appreciated.
I have just signed up for a 36months for a Plasma TV. Think I can cancel this contract? As I will not get the goods until 10th December 2010? Or am I screwed now?
Flexi rip off is a disaster you have NO rights and they have all the bases covered when it comes to screwing you.
DONT fall for this scam and im not surprised gerry harvey is involved with the company.
so lets say that the gadget i have bought is for 2500 AUD, what is it that they are expecting from me when i buy it from them at the end of the term.
AXE
unless you have in your contract the flexikeep option(bottom left of the cover sheet) with a months rental stated they will want you to make an offer stating you NEVER own the goods only rent them.
yes its surely one of the great rip off companies of all time FLEXIRENT
#6 - John wrote:
I have just signed up for a 36months for a Plasma TV. Think I can cancel this contract? As I will not get the goods until 10th December 2010? Or am I screwed now?
John
sorry mate but your screwed there is NO way out once you sign with FLEXI RIP OFF
ANYONE out there had any luck terminating a FLEXIRENT agreement??
Help us!!
our flexirent agreement is finishing in April 2011 we will pay the "double-time"amount which will allow us to keep "their" computer for a further 2 years and then we will hand it back - or offer them 300 dollars for this laptop. Will not be flexirenting EVER again... even though our laptop will be 4 years old and due to be up-graded, would rather give it to someone else and buy a new one out-right. It would be perfect for my stepdaughters who would be in late primary school in 2013 when the double time expires. I too am outraged that Gerry Harvey would be promoting such a rip-off scam. Hat=rvey Norman normally has a good rep but this is a terrible scam. Only would be beneficial to business people that can actually claim the monthly payments and need to upgrade often Not us regular people who just use laptop for the net and bits n pieces.
Steer clear of Flexirent.Dodgy operators if you ask me. Their service operators misinformed me about the end of term options. I was told that I would own the goods once I finished the paying paying off the rental agreement (with nothing more to pay). You can imagine my shock when I found out that they had been debiting my account for monthly payment for 15 months after the end of the original rental agreement. They now claim that they sent me one letter (lie, never received anything) informing me off my options at the end of the rental agreement period. Possibly the worst company I have had the misfortune of dealing with. They have now taken over $2000 extra on top of the original cost of the goods. You have been warned!
@Heidi, once you are in you can never get out. You do wonder how a company like this continues to operate using obviously dodgy practices without any consequences whatsoever. They then have the nerve to send you a sarcastic letter claiming they have transparent business practices. Shame on flexirent.
I signed up to flexirent three weeks ago and now I'm after finding out my hours have been cut in my job. Is there anyway of terminating it? I don't have to pay the initial rental payment til 20th February so it's still early days. Will I just have to pay the initial rental payment to get out of it. Laptop brand new and only three weeks old.
ok, for all you guys claiming flexirent is a scam. I have a business and I have over 10 grand worth of flexirent. Yes you do end up paying more then the original price but the company has to make its money somehow for giving you the insurance right?
Lets take a $2000 laptop you'll be paying over 1000 dollars extra over a 24 month term.
With that not only do you get insurance, but most of the time flexirent is giving away bonuses. Last promotion they were giving away SLR cameras, and the one before they were giving 4 gb's wireless internet for free.
I think this article is written by someone very biased that most probably had a bad experience with the company as it does not mention all the benefits.
For example if you loose your job flexirent will suspend your payments until you get a new one, if you go overseas you have insurance for 30 days there as well.
Most people that get flexirent dont understand the full details of it, once your contract is up, you pay one more month and they give you double the lease (ie your contract was 2 years, they give you 2 extra) absolutley free! With insurance!!
In this day and age people criticize anyone whos trying to make a buck, they want all the features and pay nothing for them, the world does not work like that.
You want benefits you pay for them, minus the insurance worth to you, the bonus internet they give you, and the loaner laptop when yours dies!
To those looking to cancel a flexirent;
A flexirent contract can be cancelled by the HN store franchisee where you purchased the goods. A salesperson at my local store lied to me about flexirent and I was able to cancel within 14 days - not sure on max time limitations.
Don't waste time with managers - go straight to the store franchisee.
Flexirent is good for a few - bad for most
Hi I've had the same bullshit problems Harvey norman told me 24 months at 114.00 a month so I worked it out 24 x 114.00 on a 2200.00 Pc. Didn't mind paying 400 in interest 12 months later flexirent call me and notify me that I've got 24 months left and it's actually a 36 month contract my computer needs to be repaired I have to sort it out myself and I'm now 280 dollars in debt even though they put a 2 month suspension on for me. They are a pack of lying conartist fucks.
Do not flexirent anything
HI All
I agree flexirent are wankers. I finish my contract in 6 months. Managed to speak with a nice person and she has assisted me enormously. I cant wait to it finishes. My husband signed up for it and now we shop together. Flexirent should be called flexifu*ked!
HI, FLEXIRENT ARE THE BEST OPTION. THERE IS NO OTHER FINANCE HAS A OPTION LIKE, IT COVER IF DAMAGED BY ACCIDENT. FLEXIRENT HAS IT.
Flexirent are the worst, i got scammed by this company back in 2005.. cost me an absolutele fortune for a buck of crap computer and desk.. never again! absolute scam of a company
Thank you for you comments on this page. I was going to go to Flexirent toget a laptop for my son but now i would not touch them with a ten foot pole.........
Flexirent and the guy from harvey norman akawana are liars my 24 month contract turned into a 36 month without my knowledge.
If you fall for the flexirent blurb I am afraid you didn't do ANY homework.
Some idiot flexi'd $1000 worth of stuff he didn't need just so he would ge a free PS3... that is going to cost him one big wad of money.
Some people are FOOLS
when you try to talk with them over the phone, they are abrupt and rude
As long term user of Flexirent,over several years, so speaking from experience, all I can say getting involved with Flexirent a bad mistake. My advice, don't do it,I know its easy to get started and have want you right there and then, but remember you will pay for it over and over again, even if it it a tax deductible situation you are still being ripped off. Save you money and pay for it. And if by chance you fall upon a difficult time, so matter how good a customer of Flexirent they say you are, you will find out what you are really dealing with, and they will screw you for plenty. I will repeat do not go near Flexirent, even Gerry Harvey said people were made for doing it!!
Adding to my first comments on Flexirent,please do not ever accept any verbal agreement with them over the phone, they are very reluctant to sent you a letter about any altered arrangements, and will deny any previous agreement made over the phone. If you having real dramas with them contact your bank and have cancel your direct debit, or if your direct debited from a credit card arrange to have paid out and cancel that and get a new credit card account its the only way you will stop them taking your money, They hide behind a telephone in unknow office in Sydney, they unethical and they lie and and they steal your money if you give them half a chance.
Hi,
All in all, good for listening to music, but not making any real EQ adjustments with. at the jack than the modern flexifail type but the chord does feature a coiled section for extention.
Thanks,
Reva
@ KEN
"Most people that get flexirent dont understand the full details of it, once your contract is up, you pay one more month and they give you double the lease (ie your contract was 2 years, they give you 2 extra) absolutley free! With insurance!!" Flexirent still owns the equipment so if they really wanted to legally all they have to do is send around a rep to repo the equipment on a technicality its a rare occurence though. i have a tv and laptop flexi'd my partner has a laptop flexi'd i just bought a new tv because i am half way thru the lease and its outdated thats the only downside other than the cost on top is that you can't upgrade till bout 6 months from end of term.
I think flexirent is the best think since sliced bread. FUCK ALL YOU FLEXIHATERS.
Flexirent for life!!!!!
As ex employee here is a few tips for you all
1) ALL flexirent contracts can be cancelled prior to settlement, however the salesperson in store are quick to fax them back to Flexirent and flexirent have a dedicated team for settlements.
2) If the salesperson or the operator on the phone at Flexirent mislead you in anyway whatsoever then by law you can cancel your contract.
3) Some salespeople especially Harvey Norman salespeople sometimes don't show you the whole contract that you need to sign instore so always check the page numbers, flexirent clearly mark the page numbers.
3) for ALL business contracts Flexirent does not and is not required to disclose the full contract amount, however for all CONSUMER RENTAL agreements flexirent does disclose the full amount you will pay over the life of the contract(Yet again this is the page some salespeople hide from you)
4) Your contract clearly states that at the end of the agreement it is your responsiblity to choose an End Of Term Option, Flexirent very cleverly state that the will ENDEAVOUR to contact you at your last known address via mail.
However if you don't contact them then there is a clause in the contract that gives them the right to place you on a month 2 month basis until you cancel.
(This is no different to a foxtel agreement at the end of 24months foxtel don't cut you off unless you call them and ask them)
Finally Flexirent really don't want the equipment back at the end it's cheaper to for them to screw one last payment out of you and terminate the contract.
Always ask the operator what is the Fair Market Value is and generally offer 1 or 1.5 rental payments as an offer generally if it's reasonable the will accept it.
If you have any further questions I will be more than happy to answer them, as an ex employee I left because of there unscruplous practices and the dodgy Harveys sales people.
NEVER GO WITH FLEXIRENT... I realised today that they had taken 2 extra payments out of my account after my contract had ended. Thinking it was a mistake, I phoned to let them know that they will have to refund me. After getting off the phone with them they are telling me that I actually owe them $500 dollars to buy my laptop out. When I purchased my laptop the sales rep told me that I would pay my 12 monthly payments and then it would be mine to own. She also said they will contact me too see if I wanted to upgrade (which they did not!). Now it is my fault becoz I did not contact them! Today they told me that they would not be refunding me the 2 extra payments and that the only way to wave the cost is if I purchase something through them again.. are they serious or what! I think I am going to the ombudsman about this one... probably will not get me far but it is worth a try!
I just got my flexi rent contract reversersed through HN, it made me sick when I got home an read wot I would actually pay and after I did the research that there was no guarantee you would own it at the end like the store said, I went down there and got finance instead and bought the equipment, mind you if I had of gone the finance way first I wouldn't of spent so much, but the way they sell it to you, claiming it on tax, insurance etc you think it's a good deal, get home spell is broken an you freak out about what you have done, they are good salespeople, especially when getting something out of it, I just went back the next day, got the finance and then swapped it over, still haven't confirmed through flexi rent but the store manager arranged it all, took 2 hrs to deal with it, but still I think if you go in straight away with the complaint they will be ok with it, I did mention that I knew their sales staff get commission and this was the sole reason I was given the hard sell!
www.harveynorman.ie/.../terms-and-condi
it says here about the 10 day cooling off period through Harvey norman unless its written on the pge you sign that you waive it
If you have a problem, get the money to purchase the goods rather than renting. All you see this as a lucrative offer, but get your basics right and do your bit of research and understand what a FINANCIAL LEASE is, if you think it is too complicated then dont go for it.
flexirent is shit and I believe we should not pay them and ask to fair trading NSW to fix them
I have 2 more payments on my 24 month contract cant wait to be finally out of it. HN sales guy told me at end of term for one more payment I will own it. Not the case, They better except my "reasonable offer". Dont flexi rent !
I bought a computer on flexirent lat week. After reading all these comments I was a wee bit anxious and so wanting to get out of the 24 month contract. So off to HN I go. Bless their cotton socks, I got my contract cancelled there and then.
Just give it a go, worth a try. I did.Now the computer is mine.
I signed a contract yesterday with Rentsmart, then freaked after properly reading the terms. Called them up this morning and they were actually really nice, and said it was fine for me to cancel the contract. Easy as. I guess because it was so soon.
I work for the big retailer, initials HN.
Flexirent pay retail sales people commision on every deal.
Every deal is a bad one for the constomer.
I refuse to sell the Flexirent product as it is nothing but a con, a rip-off, a rort, stealing from the stupid... is that clear enough?
Assuming you could get a small tax deduction, would your pay 58% more for a product over 3 years than it was worth than pay a ridiculously high final value payment to own it. If you answered yes, you are a bloddy lunatic.
OK, so I made a few typos in posting #38 above.
DO NOT FLEXIRENT.
Get a GO Mastercard and ONLY use it for special interest free offers (like HN's 20mths or 30 mths or whatever the offer is at the time). No interest for the term of offer, only $4.95 / mth admin and IF YOU and the item ARE ELIGIBLE you might be able to claim a tax deduction for the DEPRECIATION (check with you tacx agent / accountant). Just make sure you pay the damn thing off by the end of the offer period and it is great. :) :) :)
I have been screwed by a Rental Agreement for computers. I have been monitoring the contract expiry clause closely with view to not renewing one due April another due July this year. however as the company has now referred me to the contract it states unless I give them notice 6 months prior regardless of my intention they will assume an extension for another 12 months. Never use Impressions Finance or any Rental Contract without reading all Terms in contract!
Hi I just signed up for flexirent n Sunday but once discovering the full amount I would be pay for this laptop I wouldn't even own, I began to panic. So far I have rung flexirent three times and even returned to the store. At the store they were quite happy for me to simpling pay upfront for the products but informed me I would have to contact Flexirent first and see if they would allow this, Iam currently waiting for a call from Flexirent's services and recovery team to speak with them, and was just inquiring to if anyone had succeed in ending their contract before even starting it
NEVER FLEXI RENT
I rang Flexirent to day and they told me that I could pay $385 and the computer is mine or pay one more month payment and the computer is mine for another 3 years with no payments but I still dont own the computer and after 6 years I can offer them a fair price for the computer Again DO NOT USE FLEXIRENT
DAM
I have a AAA credit rating, been with the same employer 6years. I wanted a top shelf DELL computer, cost $4000, DELLS finance knocked me back ???? when I asked why DELL said "they do not inform us to their reasons"? them immediately offered "FLEXIRENT" (yesterday Friday) After reading this, when they e-mail me back the application form, well it's not rocket science. ONE LOST COMMISSION FOR SOME ONE....... YOUR PAIN & FRUSTRATION..... IS MY SALVATION, I CAN'T THANK YOU ENOUGH
[[...] Please also read this excellent blog about urging caution in regards to using Flexi Rent [...]
Comment Published: 06/4/2009 at 5:44 PM