A member of my family recently told me about a PC that she ordered from a computer reseller called Blue Hippo Funding.
It basically sounded like a layaway plan. I decided to look into this program because she told me the delivery date had been delayed. I went to their web site and read the contract agreement. If there ever has been a one sided contract, this was it. I understand the company offers this contract AFTER a $99 deposit is ALREADY made AND the customers' BANK ACCOUNT is given to them without knowing the agreement. I am no lawyer, but, it seems to me that this contract protects only Blue Hippo Funding. The customer must pay the $99 deposit and three months of weekly payments before the PC is shipped to them, and then nine more months of payments are required. The 2005 Gateway Premiere Desktop model for sale is at a pay schedule of $35.99 per week over twelve months. That comes to $1970.48. Or:
$99 ($35.99 x 52wks = $1,871.48). Now, Gateway has a PC for sale on their web site very comparable to the Premiere model sold by Blue Hippo, it is the Gateway 3310s. The processor is a little bit faster, the crt monitor has a flat screen, the CD player can also copy, a two piece speaker system and keyboard w/mouse are included. All of these features are a little better
than those of the BH Premiere model. The Gateway 3310s sells for just $399.99. The only thing it doesn't have is the (worthless in my opinion of course) six month AOL internet connection package.in my opinion, at the point the contract it met for delvery of the PC, that is, after the $99 and three months of weekly payments are paid, the retail value of the PC is essentially paid. The remaining money given to Blue Hippo would
then be financing costs. 52wks/yr divide by twelve months gives an average monthly payment of 4.333 weeks per month. So, 4.333 payments per month is $35.99 x 4.333 = $155.94/month. Then, $155.94 x 3mths = $467.82, plus the $99 deposit = $566.82/3mths.
Finally, $1,970.48 (total cost) minus $566.82 = $1,403.66. This would be the actual finance charge (or punishment) for buying this particular model of PC from Blue Hippo Funding. There can be nothing about this DEAL or this company that is truely beneficial to the consumer. I find this company and all it's employees to be unconsionable imposters.
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