0% interest question | Page 2 | TigerDroppings.com

Posted byMessage
Vols&Shaft83
Georgia Tech Fan
Member since Dec 2012
18504 posts

re: 0% interest question


quote:

Because the 84% who don't pay it off in time provide more than enough profit to cover the 16% that do.

Why do retailers run ANY promotion in that case?


Ok, so they could lose money on 16% of their customers because they're paying interest to the bank? Plus the cost of advertising, insurance, warehousing, employee wages, taxes, legal fees, repairs, overhead, etc... OR they could include the cost of the interest the bank charges them in the price and make money on 100% of their customers regardless of how responsible the customer is about paying the loan off?

I'm gonna go out on a limb and say they are going with that 2nd option, just a hunch.






Back to top
  Replies (0)
LNCHBOX
LSU Fan
70001
Member since Jun 2009
22019 posts

re: 0% interest question


quote:

Explain to me how 0% interest makes money for the 3rd party lender then? Banks NEVER LOAN Money at 0% interest. They will either charge the facilitator of the loan, or the customer.


I can tell you that I can go into Sears right now and buy a TV one of two ways:

1) $xxx in cash.

2) $xxx at 0% on my Sears card.

There is no discount there for how you pay. They are banking on you not paying it off on time.






Back to top
Vols&Shaft83
Georgia Tech Fan
Member since Dec 2012
18504 posts

re: 0% interest question


quote:


I can tell you that I can go into Sears right now and buy a TV one of two ways:

1) $xxx in cash.

2) $xxx at 0% on my Sears card.

There is no discount there for how you pay. They are banking on you not paying it off on time.


Couple things. First of all, you don't have a Sears Card, you have a Citibank card that has the Sears Logo on it. So Sears is not giving you 20% off for getting a new credit card with them, Citibank is. Sears will get the 20% back from Citibank. And if you think chasing credit card company brownie points is a smart way to build wealth, you're crazy. You may get 0% at Sears, but you'll get like 24% anywhere else you use that card.

Secondly, stores like Sears, Best Buy, HH Gregg Home Depot, etc; Do not have huge profit margins on their products. The majority of the profit comes from volume, extended warranties, and getting people to finance a purchase. So you're not gonna have much room to negotiate price with those types of stores, unless you buy something that's old and on clearance. I don't shop at those stores usually because I don't like to pay retail.

Jewelery stores, Furniture stores, high end clothing stores all have HUGE margins, 50% or more. So you have room to negotiate, and a stack of $100 bills is a powerful tool to take to a negotiation, much more powerful than a credit card.







Back to top
ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6919 posts

re: 0% interest question


quote:

Internet is king when it comes to household purchases.


The neweggs, ajmadisons, and b&hphotos are always less expensive then chain retailers. Even if you get them to match, you still pay taxes. And if on the occasion they are cheaper and you've even got a 10-20% off coupon, the companies mentioned above will match it every time, with no tax. Since I can't use cash at the above mentioned online retailers, credit is expected as the method of currency. And I get points, build credit, and pay no interest in the process.

Again, for things like car maintenance, landscaping, skilled labor jobs, cash is always the way to go. My up lighting for house company took almost 20% off their "no haggle" pricing for cash.

I guess my long winded point is its all situational






Back to top
  Replies (0)
PurpleAndGold86
LSU Fan
Houston, TX
Member since Jun 2012
10785 posts

re: 0% interest question


quote:

Really? Not at all?

Explain to me how 0% interest makes money for the 3rd party lender then? Banks NEVER LOAN Money at 0% interest. They will either charge the facilitator of the loan, or the customer.
Or do you think all of those Wells Fargo skyscrapers just appeared out of thin fricking air?


Since the customer agreed to purchase the item, at 0% interest for 90 days, then the seller of the item is responsible for the interest to the bank. The seller is going to let the bank take his profits? I THINK NOT.


Did you actually read my post?

No, that statement is not true. I didn't say the seller didn't incur any type of interest associated with the purchase. I simply said that I am not overpaying for a product because "the cost is built in". If you go to Firestone to buy the tires that I bought you are going to pay the same price as I did on the credit card I opened at Firestone to obtain the interest free for 6 months, regardless of whether or not you have cash. Firestone doesn't negotiate. Try reading before you come in trying to be a raging dick.






Back to top
Vols&Shaft83
Georgia Tech Fan
Member since Dec 2012
18504 posts

re: 0% interest question


quote:

Did you actually read my post?

No, that statement is not true. I didn't say the seller didn't incur any type of interest associated with the purchase. I simply said that I am not overpaying for a product because "the cost is built in". If you go to Firestone to buy the tires that I bought you are going to pay the same price as I did on the credit card I opened at Firestone to obtain the interest free for 6 months, regardless of whether or not you have cash. Firestone doesn't negotiate. Try reading before you come in trying to be a raging dick.




First, yes I did read your post it said:

quote:

This is not at all true


I don't see how you backed up your contention that my statement was "Not at all true ". You have provided no logical argument to the contrary.

Secondly, using Firestone as your sole example of why my statement was "Not at all true ", ranks among the most retarded arguments I've ever seen posted on this board. So because Firestone doesn't negotiate, 100% of all businesses everywhere don't negotiate?

Finally, A Firestone Credit Card??? Are you kidding me, WHO THE frick HAS TO FINANCE TIRES?

You are so far out of depth on this one, it's scary.



This post was edited on 2/20 at 12:45 pm


Back to top
PurpleAndGold86
LSU Fan
Houston, TX
Member since Jun 2012
10785 posts

re: 0% interest question


quote:

Secondly, using Firestone as your sole example of why my statement was "Not at all true ", ranks among the most retarded arguments I've ever seen posted on this board. So because Firestone doesn't negotiate, 100% of all businesses everywhere don't negotiate?


You must be retarded. Where the frick did I say 100% of all businesses don't negotiate. You must not be good at comprehending as my next post says absolutely can negotiate on furniture and it depends on what you are purchasing.

quote:

Finally, A Firestone Credit Card??? Are you kidding me, WHO THE frick HAS TO FINANCE TIRES?

You are so far out of depth on this one, it's scary.


I didn't "have" to finance tires. I chose to pay the $1,000 out over 6 months instead of paying it all at once. You are a stupid frick.






Back to top
Vols&Shaft83
Georgia Tech Fan
Member since Dec 2012
18504 posts

re: 0% interest question


quote:

You must be retarded. Where the frick did I say 100% of all businesses don't negotiate. You must not be good at comprehending as my next post says absolutely can negotiate on furniture and it depends on what you are purchasing.


Again, let me refer you to your original statement

quote:

This is not at all true


This implies that my statement about retailers factoring in the interest they pay to the bank for the 0% Financing offers on their products was 100% incorrect. Your only argument to back up this implication was to tell me a story about your Firestone credit card. My reading comprehension is fine, I'm very concerned about yours however.

quote:

I didn't "have" to finance tires. I chose to pay the $1,000 out over 6 months instead of paying it all at once. You are a stupid frick.


So you opened a line of credit, increasing your risk of identity theft and fraud, not to mention the likely negative impact on your credit score, just to make monthly payments of $166.70 for 6 months instead of paying $1000 all at once? Did you get a discount or at least a free T-shirt for selling your financial soul?






Back to top
PurpleAndGold86
LSU Fan
Houston, TX
Member since Jun 2012
10785 posts

re: 0% interest question


quote:

Your only argument to back up this implication was to tell me a story about your Firestone credit card.


Which made my point that his statement was not 100% accurate.

quote:

Did you get a discount


Yes.

quote:

not to mention the likely negative impact on your credit score,


My credit score is over 800 and I moved in to my house 2 years ago. I am not in the least bit worried about the slight potential short term impact on my credit score. You aren't quite as savvy as you are trying to appear to be if you think this is going to have some great negative impact on a credit score.

quote:

just to make monthly payments of $166.70 for 6 months instead of paying $1000 all at once


Didn't have to make payments of 166.67 each month. You probably aren't smart enough to figure out how that is even possible. Maybe in that given month 1,000 charge was not conducive to my budget. Maybe we had just gone on a big vacation. I guess that didn't occur to you though either. I guess you would rather just be a dickhole on an internet message board and try to make yourself sound really cool.




This post was edited on 2/20 at 1:10 pm


Back to top
Vols&Shaft83
Georgia Tech Fan
Member since Dec 2012
18504 posts

re: 0% interest question


quote:

Which made my point that his statement was not 100% accurate.


You didn't say "Your statement is not 100% accurate", you said "This is NOT AT ALL TRUE ". So which is it?

You did get a discount, that's great. Firestone didn't give you the discount though. The credit card company CFNA paid Firestone a commission for being their sales representative, and you got a tiny percentage of that in the form of a discount.

quote:

My credit score is over 800 and I moved in to my house 2 years ago


Congrats on the 800 credit score, your internet penis is gigantic. I guess you can retire in Maui now. Seriously, I could give a shite about your credit score, don't try to validate your statements with that bull shite.
My credit score means almost nothing to me because I don't borrow money.

quote:

I guess you would rather just be a dickhole on an internet message board and try to make yourself sound really cool.


Defending my position with logical rebuttals makes me a dickhole who's trying to make myself really cool? Ok then.



This post was edited on 2/20 at 2:02 pm


Back to top
PurpleAndGold86
LSU Fan
Houston, TX
Member since Jun 2012
10785 posts

re: 0% interest question


quote:

Congrats on the 800 credit score, your internet penis is gigantic. I guess you can retire in Maui now. Seriously, I could give a shite about your credit score, don't try to validate your statements with that bull shite.
My credit score means almost nothing to me because I don't




You have to be the biggest douchebag I have come across on this site. Good God dude. You need some fricking friends or a hand job.

I hope you feel really good about yourself. Seriously, I do.






Back to top
Vols&Shaft83
Georgia Tech Fan
Member since Dec 2012
18504 posts

re: 0% interest question


Because I disagreed with you and wasn't awestruck by your 800 credit score (assuming that's an accurate statement) I'm the biggest douchebag you've come across on this site? Awesome, my work here is done.

quote:

I hope you feel really good about yourself. Seriously, I do.


I do actually






Back to top
  Replies (0)
LNCHBOX
LSU Fan
70001
Member since Jun 2009
22019 posts

re: 0% interest question


quote:

Couple things. First of all, you don't have a Sears Card, you have a Citibank card that has the Sears Logo on it. So Sears is not giving you 20% off for getting a new credit card with them, Citibank is. Sears will get the 20% back from Citibank. And if you think chasing credit card company brownie points is a smart way to build wealth, you're crazy. You may get 0% at Sears, but you'll get like 24% anywhere else you use that card.


Well, they don't offer a discount for paying cash, so using the 0% offer isn't costing me anything any other consumer isn't paying. That disproves your assertion.

And who said anything about building wealth using a store card? You strike me as a douche bag think you know it all type.



This post was edited on 2/20 at 5:34 pm


Back to top
Vols&Shaft83
Georgia Tech Fan
Member since Dec 2012
18504 posts

re: 0% interest question


quote:

Well, they don't offer a discount for paying cash, so using the 0% offer isn't costing me anything any other consumer isn't paying. That disproves your assertion.

And who said anything about building wealth using a store card? You strike me as a douche bag think you know it all type.


Been called a douchebag twice in this thread, I must be hitting some nerves.

And you haven't disproved my assertion, the 0% offer is costing you more than the savvy consumer because even if you are one of 16% that pay off the note quickly, you're still paying full retail price for a product that goes down in value.

Not to mention the added cost of assuming a debt risk, the cost of your time to make the payments, the hassle of junk mail, fraud and identity theft risk.

And while I'm quite positive I don't know it all, I'm 100% sure I know this: I don't have to deal with any of that bull shite with cash.








Back to top
LNCHBOX
LSU Fan
70001
Member since Jun 2009
22019 posts

re: 0% interest question


quote:

And you haven't disproved my assertion, the 0% offer is costing you more than the savvy consumer because even if you are one of 16% that pay off the note quickly, you're still paying full retail price for a product that goes down in value.


That's not what the argument was, but whatever dude. You're clearly smarter than all of us. And I'd love to know how paying $xxx all at once versus paying $xxx over 6 payments somehow is costing me more. If anything I'm out ahead
due to inflation.
quote:

Not to mention the added cost of assuming a debt risk, the cost of your time to make the payments, the hassle of junk mail, fraud and identity theft risk.


Online account eliminates all of that except for the risk, and I monitor my credit freely, so not too worried about that either. Keep going though with things that have nothing to do with the claim you made.

quote:

And while I'm quite positive I don't know it all, I'm 100% sure I know this: I don't have to deal with any of that bull shite with cash.


Is this a Dave Ramsey philosophy you're trying to propagate?






Back to top
Vols&Shaft83
Georgia Tech Fan
Member since Dec 2012
18504 posts

re: 0% interest question


quote:

Is this a Dave Ramsey philosophy you're trying to propagate


I'm sure Dave Ramsey would agree with me, but no. And is there something wrong with propagating Dave Ramsey's philosophy on debt?

You keep making monthly payments if you want, I'm sure it'll lead to untold prosperity for you.

quote:

And I'd love to know how paying $xxx all at once versus paying $xxx over 6 payments somehow is costing me more


I believe you actually quoted my answer to this, let me refresh your memory:
quote:

you're still paying full retail price for a product that goes down in value.
You won't get 0% financing on something below MSRP.

quote:

Online account eliminates all of that except for the risk


Which risk, being in consumer debt? Or the risk of fraud or identity theft? Because you're correct, it doesn't eliminate either one.

quote:

You're clearly smarter than all of us.


Well at least we finally agree on something








Back to top
  Replies (0)
foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30530 posts

re: 0% interest question


quote:

even if you are one of 16% that pay off the note quickly, you're still paying full retail price for a product that goes down in value.


That has nothing to do with whether you pay in cash up front or whether you pay with a 0% APR card.

And if you pay with that 0% APR card you gain benefits you would otherwise not have.

So you fail. Sorry.






Back to top
foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30530 posts

re: 0% interest question


quote:

The 16% of people who pay the loans off in the time period have overpaid because the profit was built in to the cost of the product. You can always get a better deal with cash.


If you can negotiate a better deal with cash, possibly. But if you are paying the same price there is no reason to do so, pay with a 0% APR rewards card instead.






Back to top
  Replies (0)
Vols&Shaft83
Georgia Tech Fan
Member since Dec 2012
18504 posts

re: 0% interest question


quote:

That has nothing to do with whether you pay in cash up front or whether you pay with a 0% APR card.

And if you pay with that 0% APR card you gain benefits you would otherwise not have.

So you fail. Sorry.



If you're talking about a 0% APR that isn't issued by the store you're making the purchase from, than yes, you are correct sir. It makes no difference, unless you miss a payment. Which, I'm Foshizzle, you wouldn't.



However, I didn't quite fail, because I didn't assert that you couldn't use a 0% APR rewards card from a third party.

Also, I currently get 2%-5% cash back on all of my purchases with my debit card. Does everything a 0% APR rewards can do except for putting me in debt






Back to top
lsusaintsfan4life
LSU Fan
Member since Mar 2008
919 posts

re: 0% interest question


Do you honestly not recognize that you look like an idiot in this thread? Stop arguing just to argue. You are wrong period.





Back to top


Back to top