Don't ya think this is a bit ridiculous?

For them it's really not. You see, most of the time that you get a don't pay for 90 days, one year, or even 3 years I guess, the interest continues to accrue. So, that 1,000 sofa you bought back in 2003 is gonna cost you a little over 1500 when you have to start paying for it. That's assuming a 15% interest rate. Most people are looking at more like 19 to 21.

Moral: Nothings free, except Laptops from dumbasses and Power supplies from Newegg. :tardbang:
 
The ringer of that is that there's no intrest if you pay it in full before the first payment. Same as no-interest deals. The moment you go over the period, all the back interest slams home.
 
The ringer is that the shop doesn't care at all most of time. When you take out a Hire Purchase, what you're actually doing is taking out a loan with a financial institution, not the store itself. The shop gets paid straight away in all cases, but the lender waits 3 years before getting paid back - which doesn't bother them because that's what they're in business to do. The longer the delay, the higher the % that the lender takes out of the payment to the store.
 
a13antichrist said:
The ringer is that the shop doesn't care at all most of time. When you take out a Hire Purchase, what you're actually doing is taking out a loan with a financial institution, not the store itself. The shop gets paid straight away in all cases, but the lender waits 3 years before getting paid back - which doesn't bother them because that's what they're in business to do. The longer the delay, the higher the % that the lender takes out of the payment to the store.
Click to expand...
While that's certainly true, the retailer generally pays more per transaction for these special offers. I know here, where we sell tires that way, It generally cuts the profit in half. We still make money, but we try to avoid it if we can. I don't understand why so many people (including my wife, until I explained it to her) think it's such a great deal. :shrug:
 
Sorry, I'm evidently having a little trouble with my reading comprehension this morning. I'll bet more coffee would help! :lol:
 
You must log in or register to reply here.
Back
Top