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0% Financing

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Posted

typically financing offers like that come from a third party bank. The company you buy the product from basically buys down your rate to use as an incentive. They rarely see a nickel if you don't pay in time.

Yep. The solar company I worked for offered 0% interest. We would cut deals to customers who did not use it though because it basically took 6% off our profit when they did.

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Posted

I always get 0% financing on everything... because I steal it

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Posted

I always get 0% financing on everything... because I steal it

hamburglar?

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Posted

among other things

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Posted

so where'd you get it that you were able to finance it?

I knock on wood every summer that our a/c doesn't go out..and every year it breaks...$80 here...$130 there...I'm scared that her big death is right around the corner....it was put in around 1995.....

On Zcustom's suggestion I brought Horne Heating and Air in for an estimate and they gave us the best quote/service.

I only needed to replace the AC, but thanks to the special financing, I went ahead and invested in a new heating system as well and boosted the efficiency of the entire system. (turned out to be a good thing, they found out when replacing the furnace that it was originally wired wrong and should have caught on fire years ago.)

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Posted

nice! hopefully I won't have to call them any time soon..but I now know who to call

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Posted

Did someone say crack?

d7e80tyrone2.jpg

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Posted

I might use 1.7% to buy a used car. Haven't decided on 6-7 year deal though. I looked at the depreciation over time and would never be upside down in the vehicle and the monthly payments are stupid....i mean really stupid

dude do not finance a used car for 7 years. Even at that extremely low rate that would be dumb. If the payments are stupid low for your budget then go as short term as you comfortably can.

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Posted

little known credit issue concerning 3rd parties. even though you get the 0% be aware of who the underwriter or how they classify who is loaning you the money.

meaning, lets say you get a loan and 0 but its not technically the comp you are buying from and the comp they gave you credit is categorized as a finance comp, this, could LOWER your credit score. its kinda rare but can happen.

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Posted

If you don't pay it off before the end of the "free" period, then you are hit with all the back interest! :eek:

Usually the interest is 19%=25%!!!

Also doing this will lower your credit score across the board. Way worse than if you have a loan outstanding. (That's the first thing they tell you in real estate school.) Companies that offer 0% financing don't report anything to the credit companies, just that you have an outstanding loan. This raises a red flag to underwriters. Until you either don't pay if off in the amounted time or you do pay it off in the amounted time.

I used to tell all my clients NEVER go out and buy a bunch of furniture or anything else on 0% interest for.... It will usually drop your credit score by 10++ points easily. If could mean getting a home loan and not getting a home loan.

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Posted

If you don't pay it off before the end of the "free" period, then you are hit with all the back interest! :eek:

Usually the interest is 19%=25%!!!

Also doing this will lower your credit score across the board. Way worse than if you have a loan outstanding. (That's the first thing they tell you in real estate school.) Companies that offer 0% financing don't report anything to the credit companies, just that you have an outstanding loan. This raises a red flag to underwriters. Until you either don't pay if off in the amounted time or you do pay it off in the amounted time.

I used to tell all my clients NEVER go out and buy a bunch of furniture or anything else on 0% interest for.... It will usually drop your credit score by 10++ points easily. If could mean getting a home loan and not getting a home loan.

My loan has already gone through underwriting and been approved in full, but I have not yet closed. I need to buy a fridge and a washer/dryer for my house...am I safe to at this point or I do need to wait until I close?

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Posted

among other things

Rapist?

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