Financing Your Purchases…..

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

  1. Walter Koehler

    Walter Koehler Active Member

    Location:
    Hamburg, Germany
    Aloha
    Did financing few times
    1.BMW R-27 bike 2500 Dmark 1974
    2.Fiat 124 spider 5000 Dmark 1976
    3.2 bedroom condo 123000 Dmark 1989
    4.1bedrooom apartement 126000 Dmark 1990
    5.2 bedroom condo 146000 Dmark 1996
    all paid since 10 years
    Cash counts now
    Cheers
     
  2. ZenArcher

    ZenArcher Forum Resident

    Location:
    Durham, NC
    I'll do a 0% deal only if I have the money to pay cash today. I don't speculate on what I'll have in the future.
     
  3. Rolltide

    Rolltide Forum Resident

    Location:
    Vallejo, CA
    100% agreement with this. Even without 0% interest, credit can be used responsibly. Just because not everybody is responsible with credit doesn't make this false. Using credit responsibly is just one part of managing money properly. Any time I buy something on credit, be it an audio gadget or a car, I have a fairly precise plan of how and when it is going to be repaid.
     
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  4. This is true in principle, but the danger in this is that debts are a commodity that can be bought and sold, so you have to make sure that what you have stays with the institution you want it to be with, especially if you ever want to add to it, refinance it, etc etc...
     
  5. Hendertuckie

    Hendertuckie Active Member

    Location:
    Henderson, Nevada
    I'm 64 years old. Audio gear is a cash and carry and has been that way since I got on this merry go round. I also don't rent music. The only thing old people rent is Medical Equipment and the accessional fashion model.:pineapple:
     
  6. DPM

    DPM Forum Resident

    Location:
    Nevada, USA
    I have financed several audio purchases via 0% financing through Music Direct. My Audio Desk Vinyl Cleaner Pro and a pair of Shunyata Research speaker cables were bought this way. I paid them off well before the deadline.

    I plan on purchasing a Lyra cartridge in the same manner.
     
  7. chili555

    chili555 Well-Known Member

    I entirely agree.

    I fall in the middle of the options listed in the poll. While I generally prefer to pay cash, once in a great while, when gear acquisition syndrome gets the best of me, I cave. When I bought my current speakers, I had about half saved up. I paid the remainder with my HELOC but then paid it to zero in five months. My temporary debt was neither a burden nor unmanageable. In fact, by paying with a check (against my HELOC), I was able to negotiate a discount on other items. The discount was greater than the few dollars of interest I paid.
     
  8. H8SLKC

    H8SLKC Forum Resident

    Location:
    Boston, MA
    Oh ye hobbyists of little intelligence! You have no idea how quickly old age will arrive. When you are 60 you will wish for every penny back that you failed to pile into retirement funding. Financing freaking audio gear? That's just plain stupid. Seriously. Stupid.
     
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  9. broshfab4

    broshfab4 Forum Resident

    Location:
    Long Island, NY
    Cash only!
     
  10. Bill Mac

    Bill Mac Forum Resident

    Location:
    So. ME USA
    True. But in a way you're over thinking this in a way. The discussion is about audio gear where the extended credit is not a huge amount. If the discussion was about mortgages then you thoughts would be relevant. But I doubt anyone will be "buying" my loan from Music Direct, Pay Pal or any other entity that offers 0% financing. I have no need to refinance a $500 purchase of an audio component. That's why if one is responsible with their purchases when using credit then they will not have any worries IMO.
    Apparently you're not following the discussion to closely. If one uses 0% financing and pays off that purchase well within the offers timeframe what's the downside? Also as has been posted numerous times one has to be responsible with their purchases whether it's with credit or cash.
     
    Last edited: Dec 7, 2017
  11. Synthfreek

    Synthfreek Please label the photos you post

    Location:
    Austin, TX
    You're basically just straight up calling a bunch of us stupid. You're stupid.
     
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  12. padreken

    padreken Active Member

    Location:
    San Diego
    I was kind of kicking myself for not jumping in on the 36 month Music Direct 0% financing when they had the PS Audio BHK components discounted for a Black Friday event.
     
    chili555 likes this.
  13. chili555

    chili555 Well-Known Member

    So, if I take advantage of 0% or even 4% HELOC financing and leave my cash in investments in a year that the S&P has gained 16% YTD, then you characterize that as stupid. I must disagree.

    By the way, I am well past 60. I didn’t disturb my retirement savings one penny in order to buy my speakers.
     
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  14. lesterbangs

    lesterbangs Well-Known Member

    I don't buy something unless I am confident that I can pay it off in one credit card cycle
     
  15. Uhm, my comment was in response to your example about buying a car, so maybe dial it down a little?

    There's a lot wrong with this statement.
    One, in both your examples neither entity is financing jack squat. Music Direct uses Synchrony Bank, and PayPal uses Comenity Capital. The banks offer these programs to retailers because the account you open with these banks when you finance a purchase has value to them.
    Two, it's not a loan at all. When you buy a piece of gear for $500 at 0%, you're not taking out a $500 loan that goes away when the gear is paid off, you're opening a line of credit (and a revolving line with variable interest, at that) with that bank for whatever amount that bank has approved you for - the retailer has nothing to do with it at that point, the bank has already paid them the full amount of the purchase.
    Three, the 0% interest rate is tied to a specific purchase, it is not a zero interest account.
    Four, those kinds of retail credit accounts, even if they happen to be carrying a zero interest balance, get bought and sold all the time.

    Many people don't stop at $500, for better or worse, but congratulations on your discretion.

    100% agreed on this point. Part of being responsible with credit is understanding how it actually works.
     
  16. Bill Mac

    Bill Mac Forum Resident

    Location:
    So. ME USA
    Understood. Was just posting my opinion nothing more nothing less.
    You are most definitely much more well versed in financial matters than I am. I stand corrected as you are correct in all that you posted above. I guess I don't look that deep into this as you do. I just buy with 0% quite often and pay it off well within the allotted timeframe. No worries here as enjoy listening to my system as I type away :).
     
    Last edited: Dec 7, 2017
  17. hockman

    hockman Well-Known Member

    Gear and music are luxuries. I don't consider it wise to go into debt to buy these things.
     
  18. russk

    russk Forum Resident

    Location:
    Syracuse NY
    The only things I buy on credit are homes and cars and even then with good percentage down. Nothing in my system caused any financial strain to purchase nor would a buy anything as trivial as audio equipment that did. Don't get me wrong I love my gear and put lots of thought and sometimes effort into purchasing it. I will save up for an expensive purchase by picking up over time shifts when I have a contract with a good overtime rate but that's about as far as I go.
     
  19. Hogues

    Hogues Active Member

    I never use cash anymore. I hardly even carry it. I use a rewards card for the majority of my purchases every month which I pay off at the end of each billing cycle. For larger purchases I use 0% offers when available. I look at it as free money since I'd rather have my money in an interest baring account and pay off the large sum over time. I watch my debt like a hawk and never pay interest. I'm very careful about it.
     
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