0% Financing

[Carolina Husker]

Is like crack cocaine to me.

If I'm buying something and they're offering this, is there any reason not to take it?

[Kitten Diver]

As long as you have the cash on reserve on top of your 6-9 months salary savings no.

If they know you have good credit and offer 0% they are banking on you losing your job. Its a gamble and sooner or later they will win, just as you will lose.

Personally I will do it, but plan on paying it off in 6 months max. If I cant do that then I cant afford it.

[g5jamz]

0% financing for how many months...

if indefinite...it is like crack...otherwise it's nothing more than a hope/bet that you'll forget and not have the money at the deadline and they'll backcharge all that interest on you.

[mmmbeans]

it's usually just a way to get you to buy something you wouldn't normally buy...

because apparently it's like crack.

[Panthro]

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

[Davidson Deac II]

Depends on the circumstances. As long as its something you need, then its definitely the best way to go. We recently decided to buy some new furniture, and specifically picked a store that offered 0% if paid for in 18 months. Just make sure you pay it off in the allotted time, or you get stuck with a lot of interest.

[Jase]

we got a new HVAC system on 0% financing/3years.

it was a great option.

[Davidson Deac II]

As long as you have the cash on reserve on top of your 6-9 months salary savings no.

If they know you have good credit and offer 0% they are banking on you losing your job. Its a gamble and sooner or later they will win, just as you will lose.

Personally I will do it, but plan on paying it off in 6 months max. If I cant do that then I cant afford it.

That depends on what they are selling. Many of them look at it as a way to sell their stuff, with an added bonus if the customer doesn't get it paid in time. They are looking at the overall bottom line of the company and its ability to move the product.

They also think that it tends to make it more likely that you will be a repeat customer.

[Jase]

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.

[Panthro]

I work on the huddle for 0% financing

[Davidson Deac II]

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.

Or the company has its own inhouse bank, like Ford Motor Credit.

[Mrs Pantherfan]

we got a new HVAC system on 0% financing/3years.

it was a great option.

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.....

[Niner National]

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.

[Bronn]

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