Financing Your Purchases…..

Discussion in 'Audio Hardware' started by Uri Cohen, Dec 6, 2017.

  1. Uri Cohen

    Uri Cohen Well-Known Member Thread Starter

    Location:
    Jacksonville, FL
    Here's a hot-topic question that I'm curious on. You want to get that gear now, but you don't have the cash. Credit Cards and Financing is cheap to obtain as a pack of bread (well, maybe not).

    I'm curious on how many members here at SH do financing? I made a poll here because I'm really curious. :)

    I do financing only if it is a 0% promo dea;. I'll even do deferred interest financing because I will always pay it off before the interest kicks in. If you want to know who offers 0% deferred interest financing, some examples are Music Direct, Paypal Credit, and the Blispay credit card where you can use 0% financing on anything above $199.

    I recently used Paypal Credit to purchase the Woo Audio WA6-SE haedphone. Total cost is $1071 due to Black Friday. Three weeks in I put down $200 towards the item. And I still have more than five months to go on it. My plan is to pay it off in one-two months.

    I was also approved for the Music Direct Store Credit Card with a $5000 limit. Was thinking on getting the Mr.Speakers Ether Flow headphone from them (since Music Direct will offer 12 months 0% promo deferred interest.

    What I do normally is put down 20%-30% of the cost at time of purchase. So when the purchase is charged on the account and ready for payment, I just do the payment on the spot. Then pay it off when there's two months left on the promo.
     
    HiFi Guy likes this.
  2. Coricama

    Coricama Forum Resident

    Location:
    Marietta, GA
    I take advantage of 0% financing every chance I get. I would rather use somebody else's money even when I have it sitting in the bank. Just make sure you make your monthly payments on time or they will hit you hard. I set up monthly auto payments so I don't forget.
     
    Dave, wgb113, oxenholme and 3 others like this.
  3. Isaac K.

    Isaac K. Forum Resident

    I did 0% financing the last time I bought my iMac, so yes. Most of the time I pay cash though.
     
    HiFi Guy likes this.
  4. HiFi Guy

    HiFi Guy Forum Resident

    Location:
    Orlando, FL
    I bought my Ultradeck on 6 months same as cash. Paid off $1250 the first month.
     
  5. BrokenByAudio

    BrokenByAudio Forum Resident

    I'll pay cash but why do it when you can put the money to use elsewhere? Besides, there's a bit of a middle ground I think. It's in the area of what precisely constitutes "interest". There's a big difference between paying credit card interest and interest on a home equity line (just for example). My HELOC was at 2.5% for quite a long time (my new line is presently at 4.5%).

    On the other hand, I took out a new card from Chase this summer and they gave me $18K of credit, no interest for the first 15 months. I'll have my speakers paid off by then. :D
     
    eddiel, wgb113 and HiFi Guy like this.
  6. Dubmart

    Dubmart Forum Resident

    Location:
    Bristol, UK
    Two years interest free credit on eBay with PayPal Credit, it definitely gives me more options and opportunities.
     
    Dave, Brother_Rael and Fritz Fernow like this.
  7. Eigenvector

    Eigenvector Well-Known Member

    Location:
    Southeast PA
    Speaking only for myself, I only buy hifi equipment when I have the cash for it. No financing of any kind ever! This is just a hobby. Financing a toy in the anticipation that I will have the money within the required payoff time (0% offers) is a short path down a deep hole that I am just not willing to risk. If I don't have the disposable cash available, I have no business buying the thing in the first place!
     
  8. Ya same with my MacBook Air

    Paid interest on my Mortgage..... Oh, and on my truck
     
    Last edited: Dec 6, 2017
  9. Catcher10

    Catcher10 Forum Resident

    I always just pay cash, save up if need be. I coach HS lacrosse and do some summer clinics and camps and what I get paid gets me my gear the last few years.....I have thought about a VPI table, but I can't get past paying $5K for a turntable.......That's a $420 monthly payment for 12 months.

    This is a hobby, not essential for my daily living needs......just me thou
     
    nosliw and Eigenvector like this.
  10. action pact

    action pact ^^ Sandy Warner, "The Exotica Girl"

    Both of these approaches are equally valid. Coricama's plan is fine if one has the discipline to stick with the plan, and Eigenvector's approach is wise if one is concerned about falling into credit black hole.
     
    SandAndGlass, Dave, wgb113 and 2 others like this.
  11. Uri Cohen

    Uri Cohen Well-Known Member Thread Starter

    Location:
    Jacksonville, FL
    So far I like the responses! And no attacks towards other members and their choices. :)

    So far the voters are voting for Cash, with Interest at 0% right behind it. Good stuff!
     
  12. jupiterboy

    jupiterboy Forum Resident

    Location:
    Buffalo, NY
    I have not used credit for audio purchases, but last year I paid more than $600 in fees and interest to my card company and they paid me more than $1,100 back. Credit is to be used.
     
    Rolltide and HiFi Guy like this.
  13. Minty_fresh

    Minty_fresh Member

    Location:
    Dirty Town
    May I ask where you financed a MacBook Air?
     
  14. JNTEX

    JNTEX Well-Known Member

    Location:
    TX
    If I need to finance something, I just don't need it.
     
    Eigenvector and MonkeyMan like this.
  15. jazon

    jazon Well-Known Member

    Location:
    ottawa
    Way too easy to become a debt slave (moreso).
     
    russk likes this.
  16. Uri Cohen

    Uri Cohen Well-Known Member Thread Starter

    Location:
    Jacksonville, FL
    Apple offers financing on their products. I believe it's 0% for a certain period of time. That's how my friend was able to get a nice iMac.
     
  17. Agitater

    Agitater Forum Resident

    Location:
    Toronto
    Financing of any kind - at 0% or anything north of 0% - leads to only one thing:

    Debt.

    Debt is a burden that eats away at the parts of a household budget that really matter. Never go into debt, interest or not, for audio gear of any kind. The only exception is really high quality hearing aids if that time ever comes - it’s the only exception.

    Audio, television and home theater gear are luxuries. When I find something I want that is financially out of reach, I either beg for a better price or take more time to save for the purchase (or both). If it’s not reasonably possible, I just walk away. I will not transfer non-disposable income from my pocket to someone else’s pocket solely to acquire more stuff, because the only result is debt.

    And debt is very, very bad. Don’t do it. Not for audio gear.
     
  18. McLover

    McLover Forum Resident

    Location:
    East TN
    Cash for me is king. I like being able to own it and sleep at night.
     
    ggg71, cat9, SandAndGlass and 2 others like this.
  19. pdxway

    pdxway Forum Resident

    Pay with credit card that offers cash back. Then, pay it all off without incur any interest. That way, it is better than cash as I get one to three percents back.
     
    Doug_B and Bill Mac like this.
  20. Rolltide

    Rolltide Forum Resident

    Location:
    Vallejo, CA
    What I would never, never do is purchase audio gear on credit with the assumption that one day it will all work itself out. That's where problems arise.

    But with an explicit, concrete plan where you know exactly where every dollar is going to come from, it's a different story. I primarily buy used. I know from experience that some things appear on the used market once in a blue moon. If I know I have a payday coming in a month or two, I'll pull the trigger.
     
    HiFi Guy likes this.
  21. Bill Mac

    Bill Mac Forum Resident

    Location:
    So. ME USA
    I totally disagree. If one buys A/V gear with 0% financing and pays it off well in advance of the end of the agreement creates zero debt. I buy cars, appliances, power equipment, A/V gear and many other items with 0% financing. In the many years of doing this I've never paid a penny in interest. If one correctly manages purchases with 0% credit or normal credit card use you'll never pay any interest. I could pay cash for many of these items but prefer to use their money and leave mine in the bank.
     
    DPM, Dmann201, nstereo and 2 others like this.
  22. Buddy>Elvis

    Buddy>Elvis Well-Known Member

    Location:
    New Zealand
    In most cases I've paid cash, but I have taken advantage of paying things off with 0% interest in a couple of cases.
     
  23. oxenholme

    oxenholme High Quality Posts™ a speciality

    I do not ever borrow money. I do not ever buy anything that I cannot afford.
     
  24. Chris Treece

    Chris Treece Member

    Location:
    Haworth, UK
    This. I didn't know it was a thing until I came to buy my SL1210GR last month. Save for eons, or take the (then) reduced price of £1100 over two years at 0%. No-brainer.
     
    Dave and HiFi Guy like this.
  25. M.R.Collins

    M.R.Collins Member

    Location:
    Dallas, TX
    I generally buy with cash, however if there is a deal and cash is not readily available I'll use 0% and pay it off quickly. You do have to be careful though.
     
    Dave and HiFi Guy like this.

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