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Actually, a lot of places constantly run "Zero Interest If Paid Off In 12 Months" deals all the time. Lowes, Furniture stores, and even some Credit cards. We'

Actually, a lot of places constantly run "Zero Interest If Paid Off In 12 Months" deals all the time. Lowes, Furniture stores, and even some Credit cards. We've paid off Couches, A refrigerator, a new Sewer Drain, and several other things (a nice Kitchen Table most recently) this way. It's not as good as saving for it, and getting a few dollars of interest, but that's a marginal gain anyway.

elf25 11y ago
nothing wrong with zero % interest! If you have the means to get it paid off. That's called using other peoples money.
evunveot 11y ago
The Amazon Prime Store Card is an example. You can choose per transaction either 5% cash back or 6/12 (sometimes 24) months interest-free financing, depending on the size of the purchase. (You can only use the card at Amazon, though, and there's the Prime membership fee.) I've bought several plumbing fixtures and a laptop without paying any interest this way.
- padobson 11y ago
  This is effectively how the low fed-funds rate trickles down to the consumer - there are 0% financing opportunities everywhere. Ultimately, these deals are subsidized by people who get charged with massive deferred interest payments because they don't plan properly, and that sucks for them, but as you say, it's a great way to start experiencing the benefits of a purchase instantly. Even better is to use the financing opportunity on something that makes money. I've furnished apartments using 0% financing, and I'll get anywhere from 50%-100% increase on rental income for a furnished apartment - while paying no interest on the loan! It's like putting extra money in your pocket every month for free.
  - forgetsusername 11y ago
    >This is effectively how the low fed-funds rate trickles down to the consumer - there are 0% financing opportunities everywhere. Indeed, and it's important to point this out to those who insist "Average Joe" doesn't benefit. Three of the largest investments people will make in their lives are 1) their home, 2) their education and 3) their vehicle. All 3 are generally financed, and financing rates are at historic lows.
    - maxxxxx 11y ago
      The prices of 1) and 2) are at historic highs though. Even if the interest rate is low you still have a lot of debt to pay off.
soperj 11y ago
Except you can get discounts if you pay in cash. I'd never pay more than 60% of what they're asking for a couch.
- epimetheus 11y ago
  That's a good point. I'm terrible at this kind of negotiation though, do you usually come in with a particular price or do they have a set amount if it's cash? I think I'd like to get better at negotiating, I usually end up paying full price for a car because of my lack of such skill.
  - kaybe 11y ago
    Try just asking for a discount on purchases of single items above ~100€/$. It can be as simple as saying 'Can you give me a discount?'. Sometimes you get free stuff added, sometimes a few percent off. And this is just the simplest level where you don't even really negotiate, you just ask one question nicely, no conflict. Eg. hiking boots, bikes, computers are things where that worked for me.
    - nommm-nommm 11y ago
      "Is that negotiable" is a less "direct" way of asking for a discount.
  - soperj 11y ago
    Yeah as the other person said, you definitely don't need to be a shark, ask how much it would be if you were paying cash. Also you can always walk away from a purchase and say you'll think about it. I got a call the next day where they took $500 off of bedroom furniture when I actually was just thinking about my other options. Cars especially though you should be asking for discounts, I worked at a car dealership (in detailing, i couldn't be a salesman) and they are horrible. Also they work on purely commission so it's in their best interest to give you a deal since if they don't close they don't make anything. Walk away from a car dealership as many times as you have to... really just take your time.
blktiger 11y ago
Keep in mind that 0% interest isn't the same as free money. Usually a 0% interest deal comes with "finance charges".
- Domenic_S 11y ago
  I've never seen that. What I have seen is that if you don't pay the card off completely in 12 months, they'll assess interest going back to the inception of the account, so if you make a 0% deal you've got to be sure you can pay it off in the time allotted.

elf25 11y ago

nothing wrong with zero % interest! If you have the means to get it paid off. That's called using other peoples money.

evunveot 11y ago

The Amazon Prime Store Card is an example. You can choose per transaction either 5% cash back or 6/12 (sometimes 24) months interest-free financing, depending on the size of the purchase. (You can only use the card at Amazon, though, and there's the Prime membership fee.) I've bought several plumbing fixtures and a laptop without paying any interest this way.

padobson 11y ago
This is effectively how the low fed-funds rate trickles down to the consumer - there are 0% financing opportunities everywhere. Ultimately, these deals are subsidized by people who get charged with massive deferred interest payments because they don't plan properly, and that sucks for them, but as you say, it's a great way to start experiencing the benefits of a purchase instantly. Even better is to use the financing opportunity on something that makes money. I've furnished apartments using 0% financing, and I'll get anywhere from 50%-100% increase on rental income for a furnished apartment - while paying no interest on the loan! It's like putting extra money in your pocket every month for free.
- forgetsusername 11y ago
  >This is effectively how the low fed-funds rate trickles down to the consumer - there are 0% financing opportunities everywhere. Indeed, and it's important to point this out to those who insist "Average Joe" doesn't benefit. Three of the largest investments people will make in their lives are 1) their home, 2) their education and 3) their vehicle. All 3 are generally financed, and financing rates are at historic lows.
  - maxxxxx 11y ago
    The prices of 1) and 2) are at historic highs though. Even if the interest rate is low you still have a lot of debt to pay off.

soperj 11y ago

Except you can get discounts if you pay in cash. I'd never pay more than 60% of what they're asking for a couch.

epimetheus 11y ago
That's a good point. I'm terrible at this kind of negotiation though, do you usually come in with a particular price or do they have a set amount if it's cash? I think I'd like to get better at negotiating, I usually end up paying full price for a car because of my lack of such skill.
- kaybe 11y ago
  Try just asking for a discount on purchases of single items above ~100€/$. It can be as simple as saying 'Can you give me a discount?'. Sometimes you get free stuff added, sometimes a few percent off. And this is just the simplest level where you don't even really negotiate, you just ask one question nicely, no conflict. Eg. hiking boots, bikes, computers are things where that worked for me.
  - nommm-nommm 11y ago
    "Is that negotiable" is a less "direct" way of asking for a discount.
- soperj 11y ago
  Yeah as the other person said, you definitely don't need to be a shark, ask how much it would be if you were paying cash. Also you can always walk away from a purchase and say you'll think about it. I got a call the next day where they took $500 off of bedroom furniture when I actually was just thinking about my other options. Cars especially though you should be asking for discounts, I worked at a car dealership (in detailing, i couldn't be a salesman) and they are horrible. Also they work on purely commission so it's in their best interest to give you a deal since if they don't close they don't make anything. Walk away from a car dealership as many times as you have to... really just take your time.

blktiger 11y ago

Keep in mind that 0% interest isn't the same as free money. Usually a 0% interest deal comes with "finance charges".

Domenic_S 11y ago
I've never seen that. What I have seen is that if you don't pay the card off completely in 12 months, they'll assess interest going back to the inception of the account, so if you make a 0% deal you've got to be sure you can pay it off in the time allotted.