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Interest free or not?


Robden
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8 minutes ago, Robden said:

Buying a new gun.  The money's in the bank account.  Interest free credit is available.  Is there any real advantage in using their credit?

One advantage might be that a loan fully repaid to the schedule does help build a good credit history.  That may be something useful to you in the future, or you may already have a good rating/history.

On the downside there might be some (usually modest) set up costs.

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Thanks. Not bothered about credit rating etc. My last credit was the mortgage which finished about 15 years ago.  It's their own credit thingy, and only needs one signature......done in minutes.  I could see an advantage if savings interest was high, but then, they probably wouldn't be offering interest free.

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Couple of years ago I purchased a new Ford car and it was cheaper to have a two year interest fee deal than buy cash. I know the dealer well and he said it would save me over 1k to buy like that, he recommended taking deal and then pay early to close the loan, but left cash in bank and paid for two years

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15 minutes ago, Stimo22 said:

Couple of years ago I purchased a new Ford car and it was cheaper to have a two year interest fee deal than buy cash. I know the dealer well and he said it would save me over 1k to buy like that, he recommended taking deal and then pay early to close the loan, but left cash in bank and paid for two years

I too have bought cars like that. Take the deal, make one payment then clear it. The dealers get a commission from the finance company for selling the loan. I have even asked for a share of their commission for agreeing to buy.

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Money in your bank is better than money in someone's else's. 

If you can't find a better deal and no discount for cash then what's the cost to you ???

The benefits to retailers is they sell the products, still making the mark up they want. 

Just because it's interest free doesn't mean it's going to cost you extra.There loss leaders, been going on since the Bethlehem markets in Jesus's days. 

 

 

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Generally, "interest-free" credit is nothing of the sort.  They have already marked up the price to match what they would gain from interest at a certain rate over a certain period of time.  It just sounds a lot more tempting to offer 0% credit.

If you've got the cash in your hand, make them an offer?  Does nobody else sell it at a lower price to buy in the traditional manner?

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