The interest rate you pay on a furniture contract is usually fixed for the duration of the repayment term, but you can negotiate for a fluctuating rate. Other costs Interest is not the only extra charge you will pay. There are many others that a commissionhungry furniture salesperson may conveniently forget to tell you. The costs which might be added to your monthly bill include delivery, insurance, an extended warranty, and a revenue stamp fee. So make sure you read the fine print on the sales agreement.
Insurance charges The large furniture stores insist their goods are insured until they are paid for.
Legally, the goods belong to the retailer until they are fully paid, so the seller has the right to insist they are insured against theft, fire and other disasters, says Frans Jordaan, executive director of the Furniture Traders Association. The high cost of insurance aside, the problem is that the insurance may be included in your payment contract automatically. If you have comprehensive household insurance you will need to provide proof to the store that you have taken out insurance. To add insult to injury, you will pay interest on this insurance cost. To save on this additional interest burden, you could pay the insurance upfront.