Customized number plates are a popular gift or commemorative item in the United Kingdom. These plates are a great way to express your opinions, your sense of style, or your personality on your vehicle – while staying within government guidelines for legal licensure. However, they can be expensive, especially if the plate you want is in high demand.
Some retailers have started offering number plate finance. This allows buyers to purchase even an expensive plate with a payment plan that works for their budget and lifestyle. What is more, many of those retailers are utilizing a tool called Klarna to provide customers with the benefits of financing without many of the common drawbacks!
What is Klarna?
Klarna is a Swedish fintech – or financial technology – company. They provide payment solutions to help facilitate online payments and more for today’s retailers. Both major companies and small business owners alike utilize Klarna to make purchasing easier for consumers. Klarna is best known for its “buy now, pay later” (BNPL) service, which allows consumers to purchase items and pay for them in instalments over time.
How Klarna Works
Klarna works in several steps, some of which have multiple options to choose from. Here is a breakdown to help you better understand these:
- Step 1 – Purchase. Klarna offers several options for paying over time that consumers enjoy. These include:
- Pay in 30 days, which allows you to pay for the total cost within 30 days of the initial purchase.
- Pay in 3, which breaks the total cost up into three payments. The first is due at the time of purchase, with the other two due every 30 days afterwards until fully paid.
- Financing, which allows consumers to break the total cost into many smaller payments, spread over a much longer period – usually ranging between 12 and 36 months.
- Step 2 – Approval. Klarna runs what is known as a soft credit check on potential users. This means the check will not impact your credit score, so you never need to worry about that when attempting to use Klarna.
- Step 3 – Repayment. From there, it is all about making the correct payments on the correct timeline. Your Klarna agreement should make that schedule and those amounts clear.
Benefits of Using Klarna for Number Plate Finance
There are many reasons why retailers love offering Klarna as a method for number plate finance. Some of these include:
- Immediate ownership. When it comes to most major purchases, you must wait until you have the total purchase cost to start enjoying your item. With a financing plan, though, you can start enjoying it right away – without having to wait until the money is in the bank.
- Affordability. Not everyone can come up with the money for a large purchase like a custom number plate all at once. Mahy consumers can come up with the monthly payments required for these kinds of finance plans, though, so this enables more people to enjoy these items.
- Fewer fees and lower interest. Klarna offers low interest rates on many finance plans, with the shortest plans boasting no interest or other fees at all! This takes one of the primary worries about choosing finance over outright payment off the table.
- Flexibility. Having several finance contract lengths available also makes purchasing easier to fit into your budget and schedule.
- Convenience. Platforms like Klarna make paying online safe, secure, and simple. There is nothing to figure out or worry about, simply choose your plan, pay the amount due at checkout, and let the automated payments take over from there.
Why Choose Klarna Instead of Paying for Your Number Plate Outright?
Why should you opt for Klarna – or any other method of number plate finance – when purchasing a plate? Why not just pay for the plate outright? While it is true that you may save some money by opting to pay for your plate in a single, upfront payment, there are other benefits of financing that can help bring more retailers and customers together.
The first of these is the positive impact on your credit using a financing plan can have. As long as you make the proper payments, you will enjoy a better credit score over time. Likewise, not having to dip into savings or otherwise stress about coming up with the money for a major purchase can take some of the worry out of buying something that could be a meaningful gift or commemorative item. That affordability, flexibility, and the fact that buying a plate on finance means you can immediately start enjoying it creates the perfect formula for many modern consumers struggling with the cost of living.
Choosing a custom or personalized number plate does not have to mean financial strain. Work with your retailer and Klarna to ensure you can afford your purchase now by paying for part of the cost over time – and start enjoying your private plate right away!