"No payt. til 2009" - what's the catch? - Page 3

 
Like others have said ... pay it before that date and no problems ...
pay after and that interest in the small print is tacked on, e.g.
$4000 no payments for a year ... miss the boat, and lets say the small
print says "standard fee" of  let's say "23%" ... you owe $4000 plus
$920. I purchased some kitchen cabinets that way, and what was
appreciated is that the salesperson really emphasized pay before that
due date else interest is tacked on.

 

Crap for furniture, interest that accrues the entire time, so by the time
you pay for it, it's worn out or broken.  There's nothing like owing money
on stuff that is broken or junk by the time the bill comes due.

We've done "6 or 12 Months Same as Cash", but only through reputable dealers
selling GOOD furniture like Norwalk or Laziboy. Payments made each month,
bill paid in full before the due date so no interest charged. Be aware and
informed.

Melissa

 
Melissa wrote:

Yeah - I've seen this at Rooms to Go - overpriced  junk....
the neighbor, btw, says he'll pay it in full in six months. IF he or
the frau remembers...
He says they send him a statement every month -
 which seems like a needless expense ont eh part of the lender,
 who is hoping he'll forget, right?


Well, thanks all, for the lesson.

 
To give you an idea of how or why this works, please remember that
many furniture stores are not in the business of selling furniture,
they're in the business of making loans.  The furniture is only the
excuse for you to borrow money.  They will even lose money on their
product, but make up the loss on the loan.  They're not doing you any
favors.

The same applies to many electronics stores and their extended
warrantees.  They don't make much on the product, but they make their
profit on the junk warrantee.

Yes, you can make a little money on your money collecting interest in
the bank.  But you better read all the fine print and make sure you
follow all the rules, otherwise it will cost you.

HTH,

Ken

 

I have done deals like that a few times, like with when I bought my
computer from CompUSA. Read the fine print; its all there. Usually, if
you miss fail to pay on time, you get reamed big time on interest
because you pay as if the interest begins to accumulate from the first
day of the loan and the rate is high, but if you pay off in time, no
interest at all.