As they always say, it’s more important to carry a decent wallet and have the dollar bills inside, rather than flaunt an expensive wallet, only to be cashless.
But what if you can possess luxury goods and have the dollar bills all at the same time? Yes, it’s possible.
Luxury items from big name brands such as Louis Vuitton, Rolex, Chanel and Burberry were once a preserve for the rich and famous. However, things have changed a lot over the past few years. It isn’t uncommon to spot luxury watches, footwear, designer apparel and premium fragrances strutting the streets of Singapore.
Singaporeans love the finer things in life. This is especially true for millennials. Though most of them are relatively new to the workforce, they are not afraid to fork out hundreds and thousands of dollars in order to get their hands on the latest luxury items. They may also be driven by the fact that they are purchasing something exclusive and of exceptional quality. Hence, are willing to do what it takes to possess them, even if it means spending out of their means.
Why More People Are Seeking Luxury Goods
Luxury goods are no longer a preserve for the crazy rich. Average Singaporeans are flocking to stores to get their hands on luxury goods too and it’s about much more than a matter of status. There are various factors driving the modern consumer to purchase luxury goods.
1. Social Status
The biggest factor that drives people to purchase luxury goods is low self-esteem. A person living paycheck to paycheck may choose to purchase a luxury item that they can’t afford simply to appear powerful or earn recognition. They may feel more confident having purchased this item that is a symbol of achievement in society. Thus, it becomes a form of personal pleasure, where the attainment of luxury goods allows one to feel good about themselves.
2. Keeping Up With Fashion Trends
No one wants to feel isolated by family, friends or colleagues. People therefore purchase high-end items in order to keep up with the latest trends. This makes them feel like they belong.
3. Social Media Influence
If you’re not on social media, you’re probably living under a rock. From Instagram to Facebook, social media is where people spend most of their time when online today. Millennials, especially practically live on social media.
Social media is a great way to connect with friends and family. Many people use it to show what they are up to. This may include posting pictures of the latest luxury items they have purchased. Seeing what others have posted can easily influence anyone to purchase similar luxury items.
4. Consumers Can Be Irrational
Many people are willing to spend a pretty penny in order to have a leather bag from a well-known brand even if it will cost much more than what they earn in a month. We’ve bought into the notion that higher priced items are better quality. While this is often true, it is possible to get the same quality with some cheaper brands.
For example, Apple’s iPhones are in no way unique or superior in technology to Samsung’s or Microsoft’s. However, Apple seems to make record sales every year with their phones that are by far more expensive.
How A Luxury Goods Loan Can Help
While purchasing a Chanel Bag may seem like the best thing you could do for your social status and self-esteem, it doesn’t come cheap. These bags can cost anything from $4000. This could easily burn a huge hole in your savings.
With Credit 21’s luxury goods loan, you won’t have to eat into your savings in order to fund the bag that you’ve been eyeing. Your savings should be kept wisely and only be used to tide you over emergencies. It wouldn’t be wise to eat into your savings just for that luxury bag, only to find that you don’t have the requisite funds when an emergency occurs.
This is where a luxury goods loan can come in handy.
Why You Should Consider A Luxury Goods Loan
There are many ways that you can finance your luxury goods purchase:
1. You can eat into your savings but as aforementioned, this would not be a wise decision.
2. You can borrow money from friends and family. However, it’s highly unlikely that they’ll be willing to lend you money just so that you can bag your Jimmy Choo pumps home.
3. You can use your credit card. This will probably max out your credit. You should also know that credit cards have high interest rates and short tenures. This might result in you having to live on the bare essentials until you finish repaying your credit card loan.
Benefits Of A Luxury Goods Loan
A luxury goods loan give you a better option of getting the money you need to purchase the luxury items you want, without having to bleed your wallet dry. They offer various benefits including:
1. Shorter processing time and less paper work: Unlike borrowing from a bank, taking an unsecured loan from a moneylender is less tedious. Credit 21 allows you to fill in an online application form that facilitates the entire loan process, making it much easier and faster.
2. Faster approval: If the luxury item is on sale, and you wish to make full use of this opportunity to bring it home, a luxury goods loan is just what you need. Our loans can be approved in a matter of days or even hours depending on the loan requirements.
3. Flexible terms: These loans come with flexible repayment terms. We understand that you may have pre-existing loans that require more attention such as a housing or car loan. This is why we keep our loan repayments flexible, so that you won’t have to struggle with your finances, all while trying to repay the loan. Loan tenures for luxury goods loans vary from 1 to 5 years.
5. You don’t need collateral: These loans are unsecured. This means you won’t have to put up collateral to get the money. They are therefore available even to those without property that they can use as collateral.
6. Competitive interest rates: Interest rates for unsecured loans can be quite high, especially for credit card loans. However, with Credit 21’s luxury goods loan, our competitive interest rates ensures that they are kept to a minimum. That is, lower than what you would pay if you had used your credit card.
Applying For A Luxury Goods Loan
You should first ensure that you are eligible for a luxury goods loan. The basic requirements for accessing this loan include:
- Being a Singapore citizen or permanent resident. Foreigners seeking a luxury goods loan will be required to submit their employment pass.
- You should be at least 21 years of age.
- You should be employed at the time of applying for the loan. You may be required to submit pay slips as evidence of this.
Don’t get too excited about getting access to the cash you need for your luxury goods. Be clear about the amount you’re borrowing as well as the loan repayment terms. While it may be tempting to go for the maximum amount you’re allowed to borrow, it is important to ensure that you will be comfortable repaying the amount you borrow within the stipulated time. Compare different lenders to ensure that you’re getting the best deal.
As long as you meet the qualifications and are comfortable with the terms, a luxury goods loan could be exactly what you need to get that luxury item without adversely affecting your finances. Speak to us today to find out more about our luxury goods loan. Alternatively, you can also fill in our loan application form and one of our loan officers will get back to you.